GLW Corning Inc

Dow Corning Corp. today announced financial performance for the first quarter of 2011. Sales at the silicon-based innovator and manufacturer grew 17 percent, to $1.58 billion in the first quarter. Net income was $179 million, a decrease when compared with the first quarter of 2010; however the 2010 net income number included U.S. Advanced Energy Manufacturing Tax Credits received by Dow Corning and its joint ventures. Dow Corning’s adjusted net income, which excludes these tax benefits, rose 2 percent in the quarter. Additional information about

Dow Corning’s financial results:

First Quarter Results

• Sales were $1.58 billion, 17 percent higher than last year.
• Adjusted net income was $175 million, 2 percent higher than last year.
• Growth continues in Asia and Europe, particularly in developing geographic regions.
• Significant rise in materials and energy prices in first quarter are challenging income results.

    Q1 2011   Q1 2010   % Change Sales (in billions)   $ 1.58   $ 1.35   17 % Net income (in millions)   $ 179   $ 218   -18 % Adjusted net income* (in millions)   $ 175   $ 173   2 % *Adjusted net income is a non-GAAP financial measure which excludes certain unusual items. The reconciliation between GAAP and non-GAAP measures is shown in the table following the news release.

Comments from Dow Corning’s Executive Vice President and Chief Financial Officer J. Donald Sheets:

• “Dow Corning’s first quarter sales performance reflects strong demand for our silicon-based materials, especially in electronics, solar, life sciences and industrial applications.”
• “First quarter profits were softened by sharply rising materials and energy costs, as well as expenses related to the successful startup of new production capacity in the U.S. and China. We continue to seek opportunities to enhance the efficiency of our operations and to mitigate the impact of price volatility on our business.”
• “Dow Corning’s silicones segment continues to see significant growth in emerging economies throughout Asia, Latin America and Eastern Europe.”
• “Dow Corning’s polycrystalline silicon segment through our Hemlock Semiconductor Group joint ventures continues to sell all of its production. Construction at Hemlock Semiconductor’s new manufacturing facility in Clarksville, TN, continues to progress and the site is expected to begin manufacturing polycrystalline silicon late in 2012.”

About Dow Corning

Dow Corning (www.dowcorning.com) provides performance-enhancing solutions to serve the diverse needs of more than 25,000 customers worldwide. A global leader in silicones, silicon-based technology and innovation, Dow Corning offers more than 7,000 products and services via the company’s Dow Corning® and XIAMETER® brands. 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.

About Hemlock Semiconductor Group

The Hemlock Semiconductor Group (Hemlock Semiconductor) is comprised of two joint ventures: Hemlock Semiconductor Corporation and Hemlock Semiconductor, L.L.C. The companies are joint ventures among Dow Corning Corporation, Shin-Etsu Handotai, and Mitsubishi Materials Corporation. Hemlock Semiconductor is a leading provider of polycrystalline silicon and other silicon-based products used in the manufacturing of semiconductor devices, and solar cells and modules. Hemlock Semiconductor began its Michigan operations in 1961 and broke ground at its Tennessee location in 2009.

Dow Corning Corporation Selected Financial Information (in millions of U. S. dollars) (Unaudited)             Consolidated Income Statement Data   Three Months Ended March 31, 2011 2010     Net Sales $ 1,579.3 $ 1,353.7   Net Income Attributable to Dow Corning $ 178.7 $ 218.3   Adjustment for AEMC1, net $ (3.3 ) $ (45.7 )   Adjusted Net Income2 $ 175.4   $ 172.6   1  

The periods ending March 31, 2011 and 2010 included a tax benefit related to Advanced Energy Manufacturing Credits, net of the noncontrolling interests' share.

2 Adjusted Net Income is a non-GAAP financial measure which excludes certain unusual items and which reconciles to Net Income as shown.     Consolidated Balance Sheet Data         March 31, 2011 December 31, 2010 Assets   Current Assets $ 4,805.1 $ 4,624.6 Property, Plant and Equipment, Net 6,372.6 6,120.7 Other Assets   1,585.1   1,903.1 $ 12,762.8 $ 12,648.4   Liabilities and Equity   Current Liabilities $ 1,764.0 $ 2,287.8 Other Liabilities 7,558.8 6,862.8 Equity   3,440.0   3,497.8 $ 12,762.8 $ 12,648.4