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Dow Corning Q2 Profit Plunges On Oversupply, Higher Raw Material Costs

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7/31/2012 8:57 AM ET

Dow Corning Corp., equally owned by chemical products maker Dow Chemical Co. (DOW: Quote) and specialty glass maker Corning Inc. (GLW: Quote), reported Tuesday a sharp decline in second-quarter profit as oversupply and high raw material costs continue to challenge the company's results.

Net income for the quarter was $121 million, 36 percent lower than last year's $191 million. On an adjusted basis, net income fell 35 percent from last year.

Sales were $1.57 billion in the quarter, 6 percent lower than last year's $1.67 billion.

Sales in Europe were significantly lower due to economic volatility in the region. The company noted that polysilicon prices remain depressed through Hemlock Semiconductor Group joint ventures, which continues to be challenged by oversupply in the polycrystalline silicon markets and the economic and political uncertainty surrounding the solar industry.

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by RTT Staff Writer

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