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 net income of $52.2 million for the first quarter of 2004, a 45 percent increase from net income of $35.9 million reported in same quarter of 2003. First quarter 2004 sales were $814.3 million, 24 percent higher than sales of $658.7 million in last year's first quarter. "First-quarter sales growth was driven by unusually strong global volume growth and by stronger foreign currencies," said Dow Corning's vice president for planning and finance and chief financial officer J. Donald Sheets. "Profitability improved due to our ability to contain operating expense growth below the rate of sales growth." Dow Corning 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. Consolidated financial statements are available at http://www.dowcorning.com/ or by calling 989-496-5436. Dow Corning Corporation Condensed Consolidated Balance Sheets (in millions of dollars) Assets March 31, 2004 December 31, 2003 Current Assets: Cash and cash equivalents $473.5 $462.0 Marketable securities 1,065.5 973.4 Receivables, net 582.3 541.7 Anticipated implant insurance receivable 4.9 2.8 Inventories 362.4 369.8 Other current assets 221.6 208.6 Total current assets 2,710.2 2,558.3 Property, Plant and Equipment, Net 1,431.1 1,465.7 Anticipated Implant Insurance Receivable 426.8 433.5 Restricted Assets 281.4 277.5 Marketable Securities 238.7 254.1 Other Assets 983.1 1,019.1 $6,071.4 $6,008.2 Liabilities and Stockholders' Equity Current Liabilities: Short-term borrowings $16.0 $16.7 Accounts payable 254.2 227.5 Other current liabilities 972.4 950.4 Total current liabilities 1,242.6 1,194.6 Long-Term Debt 54.5 52.2 Other Liabilities 199.8 211.9 Liabilities Subject to Compromise: Accounts payable 67.7 67.7 Implant reserves 2,248.7 2,249.9 Notes payable and long-term debt 648.7 648.7 Other 645.3 648.8 Total liabilities subject to compromise 3,610.4 3,615.1 Minority Interest in Consolidated Subsidiaries 85.5 91.9 Stockholders' Equity 878.6 842.5 $6,071.4 $6,008.2 Dow Corning Corporation Consolidated Statements of Operations and Retained Earnings (in millions of dollars except per share data) Three months ended March 31, 2004 2003 NET SALES $814.3 $658.7 OPERATING COSTS AND EXPENSES: Manufacturing cost of sales 584.8 473.0 Marketing and administrative expenses 129.5 118.4 Variable compensation program charge - - Restructuring costs - - OPERATING INCOME 100.0 67.3 OTHER INCOME (EXPENSE): Interest income 7.1 8.8 Interest (expense) (24.9) (19.8) Other, net (2.7) (1.0) INCOME BEFORE REORGANIZATION COSTS AND INCOME TAXES 79.5 55.3 Reorganization costs 1.1 1.1 INCOME BEFORE INCOME TAXES 78.4 54.2 Income tax provision (benefit) 27.4 19.5 Minority interests' share in income (loss) (1.2) (1.2) NET INCOME 52.2 35.9 Retained earnings at beginning of period $860.0 $683.4 Retained earnings at end of period $912.2 $719.3 NET INCOME PER SHARE $20.88 $14.36 ADJUSTMENTS FOR UNUSUAL ITEMS Variable compensation program charge - - Restructuring costs - - OPERATING INCOME EXCLUDING UNUSUAL ITEMS $100.0 $67.3 Variable compensation program charge, after tax - - Restructuring costs, after tax - - NET INCOME EXCLUDING UNUSUAL ITEMS $52.2 $35.9 DATASOURCE: Dow Corning Corp. CONTACT: Mary Lou Benecke of Dow Corning Corp., +1-989-496-8689 Web site: http://www.dowcorning.com/

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