Dow Corning 4th-qtr profit jumps 57 pct on recovering demand, but full year weaker

Dow Corning 4Q profit surges 57 pct

MIDLAND, Mich. — Dow Corning Corp. said Wednesday its fourth-quarter profit surged 57 percent, driven by recovering demand for its silicone products.

The company — a joint venture of Dow Chemical Co. and Corning Inc. that makes adhesives, emulsions and other chemicals for the automotive, cosmetics and other industries — said its earnings rose to $270.5 million in the fourth quarter, compared with $172.6 million a year earlier.

Excluding restructuring charges and one-time tax gains, it earned $211.3 million.

Its revenue rose 13 percent to $1.47 billion from $1.30 billion.

The venture’s full-year picture was weaker, however. Its annual profit slid 22 percent to $579.6 million, compared with $738.7 million in 2008. Full-year sales fell 7 percent to $5.09 billion from $5.45 billion.

Chief Financial Officer J. Donald Sheets said, “2010 will be another active year for Dow Corning as major capital expansions in China will be completed and Hemlock Semiconductor Group’s expansions in the United States will continue to bring new capacity online.”

Hemlock Semiconductor is a joint venture between Dow Corning Corp. and two Japanese companies, Shin-Etsu Handotai Co. and Mitsubishi Materials Corp.

Shares of Dow Chemical, based in Midland, fell 27 cents to $27.30 in midday trading.

Shares of Corning, based in Corning, N.Y., shares rose 11 cents to $18.82.