MIDLAND, Mich.--Dow Corning Corp. today announced a 10 percent increase in net income in 2015, despite a 9 percent decrease in sales resulting from a strong U.S. dollar. For the year, Dow Corning reported $5.65 billion of sales and $563 million of net income. Dow Corning’s fourth quarter net income was $193 million on sales of $1.47 billion.
Dow Corning’s adjusted net income in 2015 was $492 million, a decrease of 6 percent compared to 2014. Adjusted net income for 2015 excluded the impact of a derivative contract and gains resulting from the sale of property, long-term sales agreements and implant liability adjustment. Additional information about Dow Corning’s financial results:
2015 Year-End Results
- Dow Corning continued to increase sales volumes in its most profitable specialty silicones product lines with notable strength in the high performance building, packaging, electronics, and health and beauty care industries.
- Sales from Dow Corning’s Polysilicon segment continued to decrease as the timing of customers taking product under long-term contracts resulted in fewer shipments.
|Q4 2015||Q4 2014||% Change||2015||2014||% Change|
|Sales (in billions)||$||1.47||$||1.68||-12 %||$||5.65||$||6.22||-9 %|
|Net income (in millions)||$||193||$||37||419 %||$||563||$||513||10 %|
|Adjusted net income* (in millions)||$||157||$||205||-23 %||$||492||$||522||-6 %|
*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.
Comments from Dow Corning’s Executive Vice President and Chief Financial Officer J. Donald Sheets:
- “Dow Corning’s efforts to increase the profitability of our Silicones business in 2015 enabled us to offset the currency headwinds we faced as well as the continued volatility in our Polysilicon business.”
- “Our ability to sustain volume growth in our most profitable specialty silicones product lines demonstrates Dow Corning’s leadership in providing highly innovative and differentiated products to our customers.”
- “We continued to enhance the efficiency of our operations in 2015, enabling Dow Corning to provide unmatched global scale and services to our customers while continuing to invest in R&D and growth opportunities.”
- “We see a tremendous opportunity to accelerate growth in our Silicones business upon completion of the Dow Chemical and Corning Inc. transaction. The added power of Dow’s brand, operational excellence, global scale and powerful innovation and R&D engine will provide our customers with even greater expertise and capabilities.”
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 equally owned by The Dow Chemical Company and Corning, Incorporated. More than half of Dow Corning’s annual sales are outside the United States.
About Hemlock Semiconductor Group
Hemlock Semiconductor Group (hscpoly.com) is comprised of several joint venture companies owned in majority by Dow Corning 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 operations in 1961.
|Dow Corning Corporation|
|Selected Financial Information|
|(in millions of U. S. dollars)|
|Consolidated Income Statement Data|
|Three Months Ended December 31,||Twelve Months Ended December 31,|
|Attributable to Dow Corning||$||193.0||$||37.2||$||563.0||$||512.8|
|Adjustment for Asset (Gains) Charges and Restructuring||$||(5.7||)||$||999.7||$||(5.7||)||$||999.7|
|Adjustment for Long-Term Sales Agreements||$||-||$||-||$||(97.9||)||$||(17.2||)|
|Adjustment for Implant Liability||$||(41.1||)||$||(844.9||)||$||(41.1||)||$||(844.9||)|
|Adjustment for Fair Value of Derivative Contract||$||10.4||$||29.6||$||73.9||$||(29.1||)|
|Foreign Tax Credit||$||-||$||(17.0||)||$||-||$||(99.0||)|
|Adjusted Net Income1||$||156.6||$||204.6||$||492.2||$||522.3|
1Adjusted 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|
|December 31, 2015||December 31, 2014|
|Property, Plant and Equipment, Net||5,086.3||5,406.8|
|Liabilities and Equity|