MIDLAND — Dow Corning Corp. Wednesday reported net income of $72 million in the third quarter, down 59 percent from $176 million in the third quarter of 2014. Revenue was $1.39 billion, down 9 percent from $1.52 billion a year earlier.
The company also announced an “adjusted” net income figure of $108 million, down just 1 percent from $109 million a year earlier.
Adjusted net income excludes adjustments for the effect of long-term sales agreements, adjustments for the fair market value of a derivative investment contract, and the effects of foreign tax credits.
The company reported strong growth in its most profitable silicones segment product lines, as well as sales growth in North America, Europe, the Middle East and India.
For the year to date, revenue was $4.18 billion, 8 percent lower than $4.54 billion in the same time period last year, a decrease the company said was largely driven by the strong U.S. dollar.
Net income wsa $270 million, down 22 percent from $476 million a year earlier.
Adjusted net income for the nine months increased 6 percent to $336 million from $318 million a year earlier.
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.
“Lagging growth in the global economy combined with the
strong U.S. dollar continued to create headwinds for Dow
Corning,” said Dow Corning executive vice president and CFO J. Donald Sheets. “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.”
A global leader in silicones and silicon-based technology, Dow Corning offers more than 7,000 products to more than 25,000 customers worldwide.