GLW Corning Inc

MIDLAND, Mich., Jan. 31 /PRNewswire-FirstCall/ -- Dow Corning Corp. today reported consolidated adjusted net income of $167.1 million for the fourth quarter of 2006, an increase of 67 percent from adjusted net income of $100.0 million reported in the same quarter of 2005. For all of 2006, adjusted net income was $601.8 million, an increase of 24 percent from adjusted net income of $485.3 million reported in 2005. Adjusted net income excludes a settlement with the US Internal Revenue Service in the second quarter of 2006 and a gain on issuance of subsidiary stock in the second quarter of 2005. Including all items, Dow Corning reported consolidated net income of $167.1 million for the fourth quarter of 2006 and $668.4 million for all of 2006. Sales were $1.162 billion in the fourth quarter of 2006, 23 percent higher than sales of $0.943 billion in the same quarter of 2005. Sales for all of 2006 were $4.392 billion, 13 percent higher than sales of $3.879 billion reported in 2005. "2006 was a record year for Dow Corning, reflecting the focus our entire team places on innovation and meeting customer needs exactly," said Dow Corning's Vice President and Chief Financial Officer J. Donald Sheets. "We strengthened our portfolio in silicon and silicone technologies, despite the continued challenges 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 Year ended December 31, December 31, 2006 2005 2006 2005 Net Sales $1,161.7 $942.7 $4,391.6 $3,878.7 Net Income 167.1 100.0 668.4 506.5 Adjustments for certain unusual items: IRS Settlement, after tax (1) - - (66.6) - Gain on issuance of subsidiary stock, after tax - - - (21.2) Total Adjustments After Tax - - (66.6) (21.2) Adjusted Net Income(2) $167.1 $100.0 $601.8 $485.3 (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) December 31, December 31, Assets 2006 2005 Current Assets $3,171.4 $2,574.8 Property, Plant and Equipment, Net 1,645.9 1,323.5 Other Assets 1,146.6 1,246.5 $5,963.9 $5,144.8 Liabilities and Stockholders' Equity Current Liabilities $1,046.5 $933.0 Other Liabilities 2,755.9 2,592.8 Minority Interest in Consolidated Subsidiaries 298.3 178.6 Stockholders' Equity 1,863.2 1,440.4 $5,963.9 $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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