Dow Corning Reports First Quarter 2001 Financial Results

Apr 25, 2001, 01:00 ET from Dow Corning Corporation

    MIDLAND, Mich., April 25 /PRNewswire/ -- Dow Corning Corp. today reported
 consolidated net income of $27.7 million for the first quarter of 2001, 18
 percent lower than the $33.9 million reported in Q1 of 2000.  First quarter
 2001 sales were $646.7 million, a 7 percent decline from sales of $694.7
 million in last year's first quarter.
     "Many of our markets were significantly affected by the global slowdown in
 industrial activity and by adverse foreign exchange rate movements," Dow
 Corning's vice president for planning and finance and chief financial officer
 Gifford Brown said.  "However, I remain optimistic about the growth potential
 for silicon-based materials and services.  Dow Corning has been working hard
 for several years to create a new future focused on being a profitable,
 growing, customer-driven company.  Our restructuring and continuing expense
 reduction are creating a leaner cost structure and a streamlined supply chain
 that will make us more competitive and responsive to customer needs."
     Dow Corning, which develops, manufactures and markets diverse silicon-
 based
 products, currently offers more than 7,000 products to customers around the
 world.  Dow Corning is a global leader in silicon-based materials with shares
 equally owned by The Dow Chemical Company (NYSE:   DOW) and Corning Incorporated
 (NYSE:   GLW).  More than half of Dow Corning's sales are outside the United
 States.
     Consolidated financial statements are available by calling 517-496-5655.
 
                       WE HELP YOU INVENT THE FUTURE(TM)
                               www.dowcorning.com
 
                            Dow Corning Corporation
                     Condensed Consolidated Balance Sheets
                            (in millions of dollars)
 
     Assets                                    March 31, 2001   December 31,
     2000
 
     Current Assets:
      Cash and cash equivalents                     $342.5          $404.1
      Marketable securities                          152.3           129.8
      Receivables, net                               510.0           523.8
      Anticipated implant insurance receivable        30.5            86.5
      Inventories                                    396.5           390.6
      Other current assets                           275.1           259.0
       Total current assets                        1,706.9         1,793.8
 
     Property, Plant and Equipment, Net            1,638.8         1,684.2
     Anticipated Implant Insurance Receivable        601.9           601.9
     Restricted Insurance Proceeds                   954.6           887.1
     Implant Deposit                                 275.0           275.0
     Other Assets                                  1,178.8         1,228.7
                                                  $6,356.0        $6,470.7
 
     Liabilities and Stockholders' Equity
     Current Liabilities:
      Short-term borrowings                          $27.1           $35.0
      Accounts payable                               133.0           178.0
      Other current liabilities                      700.0           734.3
       Total current liabilities                     860.1           947.3
     Long-Term Debt                                   78.4            91.6
     Other Liabilities                               117.3           116.8
     Liabilities Subject to Compromise:
      Accounts payable                                67.3            67.3
      Implant reserves                             3,212.0         3,212.3
      Notes payable and long-term debt               643.3           645.5
      Other                                          702.2           693.2
       Total liabilities subject to compromise     4,624.8         4,618.3
     Minority Interest in Consolidated Subsidiaries  135.3           140.5
     Stockholders' Equity                            540.1           556.2
                                                  $6,356.0        $6,470.7
 
 
                            Dow Corning Corporation
          Consolidated Statements of Operations and Retained Earnings
                 (in millions of dollars except per share data)
 
                                                     Three months ended March
     31,
                                                         2001            2000
     NET SALES                                         $646.7          $694.7
     OPERATING COSTS AND EXPENSES:
      Manufacturing cost of sales                       457.5           474.5
      Marketing and administrative expenses             140.6           149.1
      Restructuring costs                                   -             0.8
                                                        598.1           624.4
 
     OPERATING INCOME                                    48.6            70.3
 
     OTHER INCOME (EXPENSE):
      Interest income                                    24.3            24.3
      Interest expense                                  (22.4)          (24.8)
      Other, net                                         (3.0)           (2.6)
 
     INCOME BEFORE REORGANIZATION COSTS
      AND INCOME TAXES                                   47.5            67.2
 
      Reorganization costs                                2.8             5.0
 
     INCOME BEFORE INCOME TAXES                          44.7            62.2
 
      Income tax provision                               15.7            24.3
 
      Minority interests' share in income (loss)          1.3             4.0
 
     NET INCOME                                          27.7            33.9
 
     Retained earnings at beginning of period           645.5           540.9
 
     Retained earnings at end of period                $673.2          $574.8
 
     NET INCOME PER SHARE                              $11.08          $13.56
 
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SOURCE Dow Corning Corporation
    MIDLAND, Mich., April 25 /PRNewswire/ -- Dow Corning Corp. today reported
 consolidated net income of $27.7 million for the first quarter of 2001, 18
 percent lower than the $33.9 million reported in Q1 of 2000.  First quarter
 2001 sales were $646.7 million, a 7 percent decline from sales of $694.7
 million in last year's first quarter.
     "Many of our markets were significantly affected by the global slowdown in
 industrial activity and by adverse foreign exchange rate movements," Dow
 Corning's vice president for planning and finance and chief financial officer
 Gifford Brown said.  "However, I remain optimistic about the growth potential
 for silicon-based materials and services.  Dow Corning has been working hard
 for several years to create a new future focused on being a profitable,
 growing, customer-driven company.  Our restructuring and continuing expense
 reduction are creating a leaner cost structure and a streamlined supply chain
 that will make us more competitive and responsive to customer needs."
     Dow Corning, which develops, manufactures and markets diverse silicon-
 based
 products, currently offers more than 7,000 products to customers around the
 world.  Dow Corning is a global leader in silicon-based materials with shares
 equally owned by The Dow Chemical Company (NYSE:   DOW) and Corning Incorporated
 (NYSE:   GLW).  More than half of Dow Corning's sales are outside the United
 States.
     Consolidated financial statements are available by calling 517-496-5655.
 
                       WE HELP YOU INVENT THE FUTURE(TM)
                               www.dowcorning.com
 
                            Dow Corning Corporation
                     Condensed Consolidated Balance Sheets
                            (in millions of dollars)
 
     Assets                                    March 31, 2001   December 31,
     2000
 
     Current Assets:
      Cash and cash equivalents                     $342.5          $404.1
      Marketable securities                          152.3           129.8
      Receivables, net                               510.0           523.8
      Anticipated implant insurance receivable        30.5            86.5
      Inventories                                    396.5           390.6
      Other current assets                           275.1           259.0
       Total current assets                        1,706.9         1,793.8
 
     Property, Plant and Equipment, Net            1,638.8         1,684.2
     Anticipated Implant Insurance Receivable        601.9           601.9
     Restricted Insurance Proceeds                   954.6           887.1
     Implant Deposit                                 275.0           275.0
     Other Assets                                  1,178.8         1,228.7
                                                  $6,356.0        $6,470.7
 
     Liabilities and Stockholders' Equity
     Current Liabilities:
      Short-term borrowings                          $27.1           $35.0
      Accounts payable                               133.0           178.0
      Other current liabilities                      700.0           734.3
       Total current liabilities                     860.1           947.3
     Long-Term Debt                                   78.4            91.6
     Other Liabilities                               117.3           116.8
     Liabilities Subject to Compromise:
      Accounts payable                                67.3            67.3
      Implant reserves                             3,212.0         3,212.3
      Notes payable and long-term debt               643.3           645.5
      Other                                          702.2           693.2
       Total liabilities subject to compromise     4,624.8         4,618.3
     Minority Interest in Consolidated Subsidiaries  135.3           140.5
     Stockholders' Equity                            540.1           556.2
                                                  $6,356.0        $6,470.7
 
 
                            Dow Corning Corporation
          Consolidated Statements of Operations and Retained Earnings
                 (in millions of dollars except per share data)
 
                                                     Three months ended March
     31,
                                                         2001            2000
     NET SALES                                         $646.7          $694.7
     OPERATING COSTS AND EXPENSES:
      Manufacturing cost of sales                       457.5           474.5
      Marketing and administrative expenses             140.6           149.1
      Restructuring costs                                   -             0.8
                                                        598.1           624.4
 
     OPERATING INCOME                                    48.6            70.3
 
     OTHER INCOME (EXPENSE):
      Interest income                                    24.3            24.3
      Interest expense                                  (22.4)          (24.8)
      Other, net                                         (3.0)           (2.6)
 
     INCOME BEFORE REORGANIZATION COSTS
      AND INCOME TAXES                                   47.5            67.2
 
      Reorganization costs                                2.8             5.0
 
     INCOME BEFORE INCOME TAXES                          44.7            62.2
 
      Income tax provision                               15.7            24.3
 
      Minority interests' share in income (loss)          1.3             4.0
 
     NET INCOME                                          27.7            33.9
 
     Retained earnings at beginning of period           645.5           540.9
 
     Retained earnings at end of period                $673.2          $574.8
 
     NET INCOME PER SHARE                              $11.08          $13.56
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X45587544
 
 SOURCE  Dow Corning Corporation

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