Dow Corning's Q2 2013 net profit falls 28% Y/Y

Aug 1, 2013 - US silicon-based materials maker Dow Corning on Wednesday said its net profit had contracted by 28% on the year to USD 87 million (EUR 65m).

On an adjusted basis, the company's net profit stood at USD 107 million, down 11% as compared to the same period of 2012.

Dow Corning, a joint venture of Dow Chemical (NYSE:DOW) and glass group Corning (NYSE:GLW), booked a 9% year-on-year drop in second-quarter revenues of USD 1.43 billion.

In the first six months of 2013, the company generated a net profit of USD 149 million, declining 22% in annual terms. On an adjusted basis, income eased by 9% to USD 174 million. Revenues slipped by 13% to USD 2.69 billion.

According to the firm's CFO J Donald Sheets, the market oversupply and increased raw materials costs continued to dent the performance of Dow Corning's silicones business in the first half of 2013.

The second-quarter results started to improve for polycrystalline silicon and other silicon-based products supplier Hemlock Semiconductor Group, which is comprised of joint ventures formed by Dow Corning, Shin-Etsu Handotai and Mitsubishi Materials (TYO:5711). Yet, polysilicon and prices and volumes fell due to the industry oversupply and the global solar conflicts, Dow Corning said.

(USD 1.0 = EUR 0.751)

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