Noting oversupply in the polysilicon industry, the threat of Chinese tariffs and other factors, Dow Corning Corporation (Midland, Michigan, US) reported a 5% drop in sales and a 77% drop in net income in its recently released 2012 results.

Dow Corning's 2012 sales fell to USD 6.12 billion, and its net income to USD 188 million. During a particularly difficult fourth quarter the company reported a USD 101 million loss, with revenues of USD 1.48 billion.

"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," noted Dow Corning Executive VP and Chief Financial Officer J. Donald Sheets.

"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."

Danger of trade wars emphasized

Dow Corning produces polysilicon through its Hemlock Semiconductor joint venture. The company cites trade disputes between the United States, China and Europe as a "major factor" in its business, noting that China is one of the world's largest markets for polysilicon used in the manufacture of solar photovoltaic (PV) cells.

2013-02-11 | Courtesy: Dow Corning | solarserver.com © Heindl Server GmbH

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