Dow Corning Q2 net income falls 28%, sales drop 9% to $1.43bn

31 July 2013 15:46  [Source: ICIS news]

HOUSTON (ICIS)--US silicones major Dow Corning on Wednesday reported a 28% year-on-year decline in Q2 net income to $87m (€65m) as sales fell 9% to $1.43bn amid continued oversupply in the industry.

Excluding unusual accounting items, Dow Corning’s adjusted Q2 net income was $107m, down 11% year on year.

Dow Corning CFO Donald Sheets said that “significant oversupply and high raw materials costs" continued to challenge the performance of the company's silicones segment.

“We did see a quarter-over-quarter increase in the second quarter for a number of our high-value, differentiated silicone-based products,” he added.

Also, Dow Corning’s Hemlock Semiconductor joint venture saw its performance begin to stabilise in the second quarter as a result of cost-cutting and other actions, he said.

However, polysilicon prices and volumes “remain significantly down as the solar industry deals with excess capacity and awaits resolution of the global trade disputes”, he said.

Dow Corning is equally owned by Dow Chemical and glass maker Corning.

($1 = €0.75)

By: Stefan Baumgarten
+1 713 525 2653

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