Dow Corning Revenues Down Slightly in 3Q15

Dow Corning Corp. today announced third quarter sales of US $1.39 billion and net income of $72 million. Adjusted net income in the third quarter decreased 1% to $108 million. Through the three quarters, Dow Corning's adjusted net income, which excludes unusual items, has increased 6 percent despite decreased sales impacted largely by the strong United States dollar.

Adjusted net income for 2015 and 2014 excluded the impact of a derivative contract and gains on long term sales agreements. Additional information about Dow Corning's financial results:

Third Quarter Results

  • Sales were $1.39 billion, 9 percent lower than last year's third quarter.
  • Despite the headwinds caused by the strengthening U.S. dollar, Dow Corning continues to grow its most profitable Silicones segment product lines.
  • Dow Corning continued to grow particularly in North America, Europe, the Middle East and India.

Year-to-Date Results

  • Sales were $4.18 billion, 8 percent lower than the same time period last year; the decrease is largely driven by the strong U.S. dollar.
  • Adjusted net income has increased 6 percent to $336 million.
  • Sales from Dow Corning's Polysilicon segment continued to decrease as the timing of customers taking product under long-term contracts resulted in fewer shipments.

* Adjusted net income is a non-GAAP financial measure which excludes certain unusual items. The reconciliation between GAAP and non-GAAP measures is shown in the table following the news release.

View Third Quarter Condensed Consolidated Statements of Operations (PDF)

Comments from Dow Corning's Executive Vice President and Chief Financial Officer J. Donald Sheets (PDF):

"Lagging growth in the global economy combined with the strong U.S. dollar continued to create headwinds for Dow Corning."

"Dow Corning's Silicones segment continues to grow its most differentiated and innovative product lines – which are also the most profitable – allowing us to offset some of the negative currency impact."

"Dow Corning's results continue to be impacted by fewer polysilicon shipments to Hemlock Semiconductor's long-term contract customers. These contracts have a degree of variability when customers take their product and recent order patterns have resulted in customer orders being concentrated late last year."

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