By Michael Calia
Dow Corning Corp. reported a rise in revenue for the fourth
quarter as its silicone segment's sales delivered growth in several
key markets.
The company also recorded a big charge related to the closing of
its Hemlock Semiconductor site in Clarksville, Tenn., during the
quarter.
The facility produced polycrystalline silicon, which is used in
solar products. There has been a glut of supply in that sector.
Dow Corning added, meanwhile, that the liability for a
breast-implant liability settlement stemming from the 1990s was
significantly reduced.
Financial chief J. Donald Sheets said the decision to shutter
the facility, "while difficult, will ultimately strengthen Dow
Corning's financial performance by eliminating the significant
costs associated with maintaining the site."
The company posted fourth-quarter earnings of $37.2 million,
down from $109.6 million a year earlier. The quarter included an
$844.9 million gain related to the implant settlement, and $999.7
million in charges related to assets and restructuring.
Excluding certain items, the company's profit for the period was
$205 million, up from $103 million a year earlier.
Revenue rose 5.5% to $1.68 billion.
The company said its silicone segment's sales were especially
strong in the Americas, Greater China and Europe. The polysilicon
unit's performance also improved in the period.
Dow Corning is equally owned by Dow Chemical Co. (DOW) and
Corning Inc. (GLW).
Write to Michael Calia at michael.calia@wsj.com
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