Oversupply and industry uncertainty continue to affect the polysilicon market, according to Dow Corning as it posted group sales of US$1.55 billion, 7% lower than last year’s third quarter.
J. Donald Sheets, Dow Corning’s Executive Vice President and Chief Financial Officer said: “Our Hemlock Semiconductor joint ventures continue to be challenged by global oversupply in the polycrystalline silicon markets. Additionally, the economic and political uncertainty surrounding the solar industry is also impacting Hemlock Semiconductor’s performance.”
As with previous quarterly management commentary, Dow Corning noted that polysilicon oversupply was a major issue. However, the company also noted that market problems would persist “well into 2013”, having previously stated that overcapacity would continue throughout 2012.
Dow Corning reported sales of US$4.64 billion and net income of US$288 million for the first nine months of 2012, down 5% compared to 2011, while net income was down 47% due to falling prices and higher raw material costs.
The company does not break out its sales for Hemlock Semiconductor, its polysilicon joint venture subsidiary.