GLW Corning Inc

MIDLAND, Mich., Oct. 27 /PRNewswire-FirstCall/ -- Dow Corning Corp. today reported consolidated adjusted net income of $152.9 million for the third quarter of 2006, an increase of 35 percent from adjusted net income of $113.2 million reported in the same quarter of 2005. For the first three quarters of 2006, adjusted net income was $424.4 million, an increase of 13 percent from adjusted net income of $375.5 million reported in the same period last year. Adjusted net income excludes a settlement with the U.S. Internal Revenue Service in the second quarter of 2006, a gain on issuance of subsidiary stock in the second quarter of 2005, and certain items related to Chapter 11 (from which the company emerged on June 1, 2004) in all reported periods. Including all items, Dow Corning reported consolidated net income of $156.0 million for the third quarter of 2006 and $501.3 million for the first three quarters of 2006. Sales were $1.141 billion in the third quarter of 2006, 21 percent higher than sales of $0.946 billion in the same quarter of 2005. Sales in the first three quarters of 2006 were $3.230 billion, 10 percent higher than sales of $2.936 billion reported in the first three quarters of 2005. "Strong sales growth was led by semiconductor and solar silicon, but all segments benefited from our focus on innovation and solutions thinking," said Dow Corning's Vice President and Chief Financial Officer J. Donald Sheets. "We continued to experience the effects of high costs of raw materials and energy." Dow Corning (http://www.dowcorning.com/ ) provides performance-enhancing solutions to serve the diverse needs of more than 25,000 customers worldwide. A global leader in silicon-based technology and innovation, offering more than 7,000 products and services, Dow Corning is equally owned by The Dow Chemical Company (NYSE:DOW) and Corning, Incorporated (NYSE:GLW). More than half of Dow Corning's annual sales are outside the United States. Dow Corning Corporation Condensed Consolidated Statements of Income (in millions of U. S. dollars) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2006 2005 2006 2005 Net Sales $1,140.7 $946.4 $3,229.9 $2,936.0 Net Income 156.0 116.4 501.3 406.5 Adjustments for certain unusual items: Chapter 11 related items, after tax $(3.1) $(3.2) $(10.3) $(9.8) IRS Settlement, after tax(1) - - (66.6) - Gain on issuance of subsidiary stock, after tax - - - (21.2) Total Adjustments After Tax (3.1) (3.2) (76.9) (31.0) Adjusted Net Income(2) $152.9 $113.2 $424.4 $375.5 (1) During the three month period ending June 30, 2006, the Company reached a settlement with the United States Internal Revenue Service regarding liabilities for tax years 1992 - 2003. (2) Adjusted Net Income is a non-GAAP financial measure which excludes certain unusual items and which reconciles to Net Income as shown. Dow Corning Corporation Condensed Consolidated Balance Sheets (in millions of U.S. dollars) (Unaudited) September 30, 2006 December 31, 2005 Assets Current Assets $2,910.2 $2,574.8 Property, Plant and Equipment, Net 1,518.8 1,323.5 Other Assets 1,167.2 1,246.5 $5,596.2 $5,144.8 Liabilities and Stockholders' Equity Current Liabilities $995.3 $933.0 Other Liabilities 2,476.7 2,592.8 Minority Interest in Consolidated Subsidiaries 236.4 178.6 Stockholders' Equity 1,887.8 1,440.4 $5,596.2 $5,144.8 DATASOURCE: Dow Corning Corporation CONTACT: Jarrod Erpelding of Dow Corning Corporation, +1-989-496-1582 Web site: http://www.dowcorning.com/

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