Significant price declines for polysilicon due to industry sector overcapacity impacted both revenue and net income at Dow Corning in 2012.
The company reported full-year 2012 sales of US$6.12 billion, down 5% from 2011. Net income was U$188 million, down approximately 45%, compared to the prior year.
Oversupply, economic volatility and high raw material costs were said to have been behind the reduced profit levels.
J. Donald Sheets, Dow Corning’s Executive Vice President and Chief Financial Officer said, “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. 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.”
Dow Corning also reported fourth quarter 2012 sales of US$1.48 billion, down 3% when compared to the same period a year ago. Adjusted net income was US$69 million, a 10% decline from the fourth quarter of 2011.
“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,” added Sheets.