Dow Corning Reports Sales and Profits for the Third Quarter of 2009

October 30, 2009 8:30 AM EDT

MIDLAND, Mich., Oct. 30 /PRNewswire-FirstCall/ -- Dow Corning Corp. today reported consolidated adjusted net income of $184.5 million for the third quarter of 2009, a decrease of 27 percent from adjusted net income of $253.4 million reported in the third quarter of 2008. For the first three quarters of 2009, adjusted net income was $366.7 million, a decline of 39 percent from adjusted net income of $601.5 million reported in the first three quarters of last year. The 2009 adjusted net income excluded restructuring charges. The 2008 results were adjusted for a loss from a write down of certain investments in the third quarter. Including all items, Dow Corning reported consolidated net income of $184.3 million for the third quarter and $309.1 million for the first three quarters of 2009. In 2008, consolidated net income was $218.0 million for the third quarter and $566.1 million for the first three quarters.

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Dow Corning's sales were $1.41 billion in the third quarter of 2009, five percent lower than sales of $1.49 billion in the same quarter of 2008. Sales in the first three quarters of 2009 were $3.62 billion, 13 percent lower than sales of $4.15 billion reported in the first three quarters of 2008.

"While we're still feeling the impact of the global economic recession, we were encouraged by a nearly 20 percent increase in third quarter sales compared to the second quarter," said Dow Corning's Executive Vice President and Chief Financial Officer J. Donald Sheets. "This was especially evident in our silicones segment, where Dow Corning's two-brand strategy delivered solid results. Sales increased in both specialized silicone materials marketed through the Dow Corning brand and in standard silicone products marketed through the XIAMETER brand.

"Dow Corning's polysilicon joint venture, the Hemlock Semiconductor Group, continues to post strong results, while the announced expansions under way are progressing as scheduled," said Sheets.

About Dow Corning

Dow Corning (www.dowcorning.com) provides performance-enhancing solutions to serve the diverse needs of more than 25,000 customers worldwide. A global leader in silicones, silicon-based technology and innovation, Dow Corning offers more than 7,000 products and services via the company's Dow Corning® and XIAMETER® brands. Dow Corning is a joint venture equally owned by The Dow Chemical Company (NYSE: DOW) and Corning, Incorporated (NYSE: GLW). More than half of Dow Corning's annual sales are outside the United States.

About Hemlock Semiconductor Group

The Hemlock Semiconductor Group (Hemlock Semiconductor) is comprised of two joint ventures: Hemlock Semiconductor Corporation and Hemlock Semiconductor, L.L.C. The companies are joint ventures among Dow Corning Corporation, Shin-Etsu Handotai, and Mitsubishi Materials Corporation. Hemlock Semiconductor is a leading provider of polycrystalline silicon and other silicon-based products used in the manufacturing of semiconductor devices, and solar cells and modules. Hemlock Semiconductor began its Michigan operations in 1961 and broke ground at its Tennessee location in 2009.

                               Dow Corning Corporation
                            Selected Financial Information
                            (in millions of U. S. dollars)
                                    (Unaudited)

                                    Consolidated Income Statement Data

                                 Three Months Ended       Nine Months Ended
                                    September 30,           September 30,
                                 2009          2008       2009         2008
                                 ----          ----       ----         ----

    Net Sales                  $1,408.5       $1,487.2  $3,624.4    $4,146.3

    Net Income
      Attributable to Dow
       Corning                   $184.3         $218.0    $309.1      $566.1

    Adjustment for
     Restructuring(1), net         $0.2             $-     $57.6          $-

    Adjustment for Asset
     Impairment(2)                   $-          $35.4        $-       $35.4
                                     --          -----        --       -----

    Adjusted Net Income(3)       $184.5         $253.4    $366.7      $601.5


    (1) The nine months ended September 30, 2009 included charges related to
        the Company's restructuring program.
    (2) The nine months ended September 30, 2008 included a loss from a write
        down of investments in  Fannie Mae and Freddie Mac securities.
    (3) Adjusted Net Income is a non-GAAP financial measure which excludes
        certain unusual items and which reconciles to Net Income as shown.



                        Consolidated Balance Sheet Data

                                      September 30, 2009    December 31, 2008
                                      ------------------    -----------------
    Assets

    Current Assets                         $2,779.4             $3,212.6
    Property, Plant and Equipment, Net      4,652.8              3,755.9
    Other Assets                            2,172.7              2,253.7
                                            -------              -------
                                           $9,604.9             $9,222.2
                                           ========             ========

    Liabilities and Stockholders' Equity

    Current Liabilities                    $1,940.8             $2,007.8
    Other Liabilities                       4,969.2              4,475.0
    Equity                                  2,694.9              2,739.4
                                            -------              -------
                                           $9,604.9             $9,222.2
                                           ========             ========

SOURCE Dow Corning Corp.

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