Dow Corning 'outpaces' sluggish economy, rising costs

ERJ staff report (TP)

Michigan – Dow Corning Corp. announced sales of $3.02 billion (€2.25bn), an increase of 12 percent over 2013, and a net income of $300 million.

Executive vice president and chief financial officer J. Donald Sheets said: "We had a strong first half of the year [and] sales and profits are growing, outpacing a sluggish global economy and amidst industry oversupply and increased raw materials costs."

Adjusted net income in the first half of 2014 was $209 million, an increase of 20 percent compared with the first half of 2013.

Adjusted net income for 2014 excluded gains from a derivative contract and long term sales agreements. Adjusted net income for 2013 excluded restructuring expenses.

In terms of second quarter results, sales were $1.50 billion, 5 percent higher than last year's second quarter. Adjusted net income was $100 million, 7 percent lower than last year's second quarter

Also in Q2 2014, the company’s silicones segment sales grew in most geographies; and saw significant growth in transportation and electronics applications. Profits in both the silicones and polysilicon segments were tempered by inflation from raw materials costs.