Dow Corning affected by oversupply and depressed prices

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While the silicon specialist has not released a breakdown of its financials, executive VP and CFO, J. Donald Sheets, stated that Dow Corning’s Hemlock Semiconductor joint ventures continue to be "challenged" by global oversupply of polysilicon and decreasing prices.

He added that both the political and economic uncertainty in the solar industry are having a negative impact on the company, and that sales in Europe, in particular, have declined.

"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," he commented.

Overall, Dow Corning recorded a Q3 2012 net income of US$97 million – down 45% on Q3 2011, which reaped $177 million. At $288 million, net income for the year to date is also 47% lower than in 2011, which had recorded an income of $547 million.

Q3 2012 sales meanwhile, reached $1.55 billion, slightly down on the $1.66 billion achieved in Q3 2011. For the year to date, sales topped $4.64 billion, down 5% on the $4.91 billion seen in 2011.