Dow Corning Corp. reports that its Hemlock Semiconductor Group continues to be challenged by significant polysilicon oversupply, as well as potential duties on its products sold into China. Overall, the company recorded sales of $6.12 billion and net income of $188 million for 2012 – down from 2011's figures. The Hemlock unit's troubles factored into these results.
"Oversupply in the silicone and polycrystalline silicon industries, as well as persistently high raw material costs and global trade policy instability, impacted our financial performance significantly in 2012,’ notes J. Donald Sheets, executive vice president and chief financial officer at Dow Corning. ‘While we expect these conditions to last well into 2013, Dow Corning's strategy for long-term success is clear and robust, and our foundation is financially strong."
"The unresolved trade disputes among the U.S., China and Europe are a major factor in Hemlock Semiconductor's business, as the threat of tariffs on U.S. polysilicon imported into China has significantly decreased orders from China, which is home to one of the largest markets for solar polysilicon," Sheets adds.