GLW Corning Inc

MIDLAND, Mich., Oct. 28 /PRNewswire-FirstCall/ -- Dow Corning Corp. today reported adjusted net income of $113.2 million for the third quarter of 2005, a 38 percent increase from the $82.1 million reported in same quarter of 2004. Through the first three quarters of 2005, adjusted net income was $375.5 million, 79 percent higher than the $209.8 million reported in the same period of 2004. Adjusted net income is a financial measure which excludes certain unusual items and which is reconciled to net income in an attachment to this news release. Third quarter 2005 sales were $946.4 million, 14 percent greater than sales of $829.7 million in last year's third quarter. Through the first three quarters of 2005, sales were $2.94 billion, an increase of 18 percent from sales of $2.50 billion in the same period last year. Including all items, Dow Corning reported net income of $116.4 million for the third quarter of 2005 and $406.5 million for the first three quarters of 2005. Strong worldwide demand for Dow Corning's products and services, along with internal productivity gains, contributed to the company's excellent results, according to Vice President and Chief Financial Officer J. Donald Sheets. "Despite pressure from increasing raw material and energy costs, our performance was enhanced by the value of silicon-based technology in many industries and our focus on customer success." Dow Corning (http://www.dowcorning.com/ ) develops, manufactures and markets diverse silicon-based products and services, and 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. 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, 2005 2004 2005 2004 Net Sales $946.4 $829.7 $2,936.0 $2,495.9 Net Income 116.4 79.9 406.5 167.8 Adjustments for certain unusual items: Chapter 11 related items, after tax $(3.2) $(4.3) $(9.8) $26.1 Gain on issuance of subsidiary stock, after tax - - (21.2) - Restructuring costs, after tax - 6.5 - 15.9 Total Adjustments After Tax (3.2) 2.2 (31.0) 42.0 Adjusted Net Income(1) $113.2 $82.1 $375.5 $209.8 (1) 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, 2005 December 31, 2004 Assets Current Assets $2,407.7 $1,828.3 Property, Plant and Equipment, Net 1,321.0 1,422.9 Other Assets 1,311.9 1,565.2 $5,040.6 $4,816.4 Liabilities and Stockholders' Equity Current Liabilities $897.0 $828.0 Other Liabilities 2,550.1 2,670.4 Minority Interest in Consolidated Subsidiaries 172.4 171.6 Stockholders' Equity 1,421.1 1,146.4 $5,040.6 $4,816.4 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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