MIDLAND — Dow Corning Corp. Wednesday announced first quarter 2015 sales of $1.36 billion, down 11 percent from $1.52 billion in the first quarter of 2014, and net income of $185.4 million, down 3 percent from last year’s $190.9 million.
The company also released an “adjusted net income” figure of $101.1 million, down 8 percent from $109.3 million in the first quarter of 2014. Adjusted net income for 2015 and 2014 excluded the impact of a derivative contract and gains on long term sales agreements.
The company said its silicones segment experienced volume growth in several of its highly specialized product lines, especially for materials sold in construction, healthcare and packaging applications.
The strengthening U.S. dollar accounted for a 4.7 percent revenue decrease in silicones, partially offset by lower than expected raw materials and energy costs.
Sales from Dow Corning’s polysilicon segment decreased for the quarter as the timing of customers taking product under long-term contracts resulted in fewer shipments in the first quarter of 2015.
“Dow Corning’s first quarter results decreased due to fewer polysilicon shipments to long-term contract customers,” said Dow Cornnig executive vice president and CFO J. Donald Sheets. “These contracts have a degree of variability when customers take their product and recent order patterns have resulted in customer orders being concentrated in the fourth quarter. Our silicones segment is steadily improving profit growth with our focus on providing highly differentiated and innovative materials to customers. Despite the headwinds caused by the strengthening U.S. dollar we saw significant growth in our most profitable product lines in the first quarter. Dow Corning continues to lead the silicon-based materials industry in the development of new formulations and applications for silicon-based technologies.”
Dow Corning provides silicones and silicon-based technologies in more than 7,000 products and services to more than 25,000 customers worldwide. It is equally owned by Midland-based Dow Chemical Co. and New York-based Corning Inc.
Hemlock Semiconductor Group (hscpoly.com) is comprised of several joint venture companies owned in majority by Dow Corning Corp. Hemlock provides polycrystalline silicon and other silicon-based products used in the manufacturing of semiconductor devices and solar cells and modules.
More at www.dowcorning.com.