31 July 2012 14:03 [Source: ICIS news]
LONDON (ICIS)--Dow Corning’s second-quarter net income fell by 36% year on year to $121m (€99m), as oversupply and high raw material costs challenged the company’s profits, the US-based silicones major said on Tuesday.
Sales were $1.57bn – 6% lower than in last year’s second quarter, it added.
Dow Corning said sales in Europe are significantly lower due to economic volatility in the region, while polysilicon prices remain depressed through its Hemlock Semiconductor Group joint ventures.
Dow Corning’s executive vice president and CEO, J Donald Sheets, said: “The first half of 2012 presented significant challenges as oversupply in both the silicone and polycrystalline silicon industries combined with high raw material costs continued to impact our performance.”
“Our Hemlock Semiconductor Group joint ventures continue to be challenged by oversupply in the polycrystalline silicon markets, and the economic and political uncertainty surrounding the solar industry,” he added.
“Protecting our competitive cost position at both Dow Corning and Hemlock Semiconductor remains essential to our long-term success, and we continue to aggressively pursue opportunities to increase efficiency and reduce costs in our operations,” Sheets said.
($1 = €0.82)
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