[February 05, 2016] |
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Dow Corning Reports 10 Percent Increase in Net Income in 2015
Dow Corning (News - Alert) 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.
This Smart News Release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20160205005347/en/
J. Donald Sheets, executive vice president and chief financial officer, Dow Corning Corporation (Photo: Business Wire)
Dow Corning's adjusted net income in 2015 was $492 million, a decrease
of 6 percent compared to 2014. Adjusted net income for 2015 excluded the
impact of a derivative contract and gains resulting from the sale of
property, long-term sales agreements and implant liability adjustment.
Additional information about Dow Corning's financial results:
2015 Year-End Results
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Dow Corning continued to increase sales volumes in its most profitable
specialty silicones product lines with notable strength in the high
performance building, packaging, electronics, and health and beauty
care industries.
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Sales from Dow Corning's Polysilicon segment continued to decrease as
the timing of customers taking product under long-term contracts
resulted in fewer shipments.
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Q4 2015
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Q4 2014
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% Change
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2015
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2014
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% Change
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Sales (in billions)
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$
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1.47
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$
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1.68
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-12 %
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$
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5.65
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$
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6.22
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-9 %
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Net income (in millions)
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$
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193
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$
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37
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419 %
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$
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563
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$
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513
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10 %
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Adjusted net income* (in millions)
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$
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157
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$
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205
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-23 %
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$
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492
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$
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522
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-6 %
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*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:
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"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."
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"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."
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"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."
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"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.
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Dow Corning Corporation
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Selected Financial Information
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(in millions of U. S. dollars)
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(Unaudited)
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Consolidated Income Statement Data
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Three Months Ended December 31,
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Twelve Months Ended December 31,
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2015
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2014
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2015
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2014
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Net Sales
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$
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1,472.1
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$
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1,676.6
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$
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5,649.3
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$
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6,221.3
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Net Income
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Attributable to Dow Corning
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$
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193.0
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$
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37.2
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$
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563.0
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$
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512.8
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Adjustment for Asset (Gains) Charges and Restructuring
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$
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(5.7
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)
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$
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999.7
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$
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(5.7
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)
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$
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999.7
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Adjustment for Long-Term Sales Agreements
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$
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-
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$
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-
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$
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(97.9
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$
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(17.2
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Adjustment for Implant Liability
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$
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(41.1
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$
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(844.9
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$
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(41.1
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$
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(844.9
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Adjustment for Fair Value of Derivative Contract
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$
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10.4
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$
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29.6
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$
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73.9
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$
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(29.1
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Foreign Tax Credit
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$
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-
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$
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(17.0
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$
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-
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$
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(99.0
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Adjusted Net Income1
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$
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156.6
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$
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204.6
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$
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492.2
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$
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522.3
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1 Adjusted Net Income is a non-GAAP financial
measure which excludes certain unusual items and which reconciles
to Net Income as shown.
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Consolidated Balance Sheet Data
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December 31, 2015
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December 31, 2014
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Assets
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Current Assets
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$
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4,510.8
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$
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4,448.3
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Property, Plant and Equipment, Net
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5,086.3
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5,406.8
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Other Assets
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977.2
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1,284.8
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$
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10,574.3
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$
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11,139.9
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Liabilities and Equity
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Current Liabilities
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$
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1,320.6
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$
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1,446.9
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Other Liabilities
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5,314.4
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6,066.3
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Equity
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3,939.3
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3,626.7
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$
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10,574.3
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$
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11,139.9
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View source version on businesswire.com: http://www.businesswire.com/news/home/20160205005347/en/
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