Dow Corning Corp. has reported sales of $4.64 billion and net income of $288 million through the first three quarters of 2012. Year-to-date sales and net income were down 5% and 47%, respectively, compared to 2011 as oversupply, economic volatility and high raw material costs continue to challenge the company's profits.
In particular, polysilicon prices remain depressed due to industry oversupply, affecting the company's Hemlock Semiconductor Group joint ventures. Sales in Europe were significantly lower due to continuing economic volatility, and net income was $97 million – 45% lower than last year's third quarter.
‘Oversupply in both the silicone and polycrystalline silicon industries, as well as high raw material costs, have impacted our financial performance throughout 2012, and these conditions are likely to last well into 2013,’ says Donald J. Sheets, Dow Corning's executive vice president and chief financial officer.
‘Our Hemlock Semiconductor joint ventures continue to be challenged by global oversupply in the polycrystalline silicon markets,’ Sheets continues. ‘Additionally, the economic and political uncertainty surrounding the solar industry is also impacting Hemlock Semiconductor's performance.’
The company says it plans to continue to focus on product differentiation and opportunities for cost reduction.