GLW Corning Inc

Dow Corning Reports First Quarter Growth in Sales and Profits MIDLAND, Mich., April 29 /PRNewswire-FirstCall/ -- Dow Corning Corp. today reported consolidated adjusted net income of $132.6 million for the first quarter of 2005, an increase of 154 percent from net income of $52.2 million reported in the same quarter of 2004. Adjusted net income in 2005 excludes certain items related to Chapter 11 from which the company emerged on June 1, 2004. Including all items, Dow Corning reported consolidated net income of $135.9 million for the first quarter of 2005. First quarter 2005 sales were $982.5 million, 21 percent higher than sales of $814.3 million in last year's first quarter. "First-quarter sales growth was driven by volume increases in all major geographies," said Dow Corning's vice president for planning and finance and chief financial officer J. Donald Sheets. "Profitability improved primarily due to our ability to contain operating expense growth below the rate of sales growth." 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 March 31, 2005 2004 Net Sales $982.5 $814.3 Operating Income 208.0 100.0 Net Income 135.9 52.2 Adjustments for certain items: Credits for early payment of certain Chapter 11 obligations, before tax (5.3) - Adjusted Operating Income 202.7 100.0 Credits for early payment of certain Chapter 11 obligations, after tax (3.3) - Adjusted Net Income 132.6 52.2 Dow Corning Corporation Condensed Consolidated Balance Sheets (in millions of U. S. dollars) (Unaudited) Assets March 31, 2005 December 31, 2004 Current Assets: Cash and cash equivalents $322.2 $322.0 Marketable securities 396.9 298.5 Receivables, net 644.7 625.8 Anticipated implant insurance receivable 27.4 30.8 Inventories 429.5 425.0 Other current assets 140.1 126.2 Total current assets 1,960.8 1,828.3 Property, Plant and Equipment, Net 1,374.0 1,422.9 Anticipated Implant Insurance Receivable 277.0 277.0 Restricted Investments 54.8 55.8 Marketable Securities 37.6 57.3 Other Assets 1,148.4 1,175.1 $4,852.6 $4,816.4 Liabilities and Stockholders' Equity Current Liabilities: Short-term borrowings $15.0 $13.9 Accounts payable 286.2 278.4 Other current liabilities 452.5 485.7 Total current liabilities 753.7 778.0 Other Liabilities Long-term debt 57.8 60.2 Implant reserve 1,869.6 1,884.9 Other liabilities 777.6 775.3 Total other liabilities 2,705.0 2,720.4 Minority Interest in Consolidated Subsidiaries 150.3 171.6 Stockholders' Equity 1,243.6 1,146.4 $4,852.6 $4,816.4 DATASOURCE: Dow Corning Corporation CONTACT: Mary Lou Benecke of Dow Corning Corporation, +1-989-496-8689 Web site: http://www.dowcorning.com/

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