Dow Corning Ends Fiscal Year on Strong Note

Dow Corning has reported consolidated net income of $270.5 million for the fourth quarter of 2009, an increase of 57% from net income of $172.6 million reported in the fourth quarter of 2008. For all of 2009, net income was $579.6 million, a decline of 22% from net income of $738.7 million reported in 2008. Dow Corning reported adjusted consolidated net income of $211.3 million for the fourth quarter and $578.0 million for all of 2009. The 2009 adjusted net income excluded restructuring charges and the tax benefit associated with foreign dividends. In 2008 consolidated adjusted net income was $174.2 million for the fourth quarter and $775.7 million for the year. The 2008 results were adjusted for a loss from a write down of certain investments.

Sales were $1.47 billion in the fourth quarter of 2009, 13% higher than sales of $1.30 billion in the same quarter of 2008. Sales for all of 2009 were $5.09 billion, 7% lower than sales of $5.45 billion reported in 2008.

"While it's still a volatile economic environment, the year ended with many positive signs," said J. Donald Sheets, Dow Corning's executive vice president and chief financial officer. "Dow Corning's fourth quarter sales performance is another significant step in the global recovery of our business."

Dow Corning also made a strategic acquisition in the fourth quarter having acquired two chemical grade silicon manufacturing assets from Globe Specialty Metals for approximately $175 million.

"2010 will be another active year for Dow Corning as major capital expansions in China will be completed and Hemlock Semiconductor Group's expansions in the United States will continue to bring new capacity online," Sheets said.

"We'll also focus on expanding our markets by investing in our diverse innovation portfolio and by continuing to expand our geographic footprint."