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DOW CORNING ANNOUNCES 1992 FINANCIAL RESULTS

 MIDLAND, Mich., Jan. 27 /PRNewswire/ -- Dow Corning Corporation today announced sales and profits for the fourth quarter of 1992 and for the year. Sales for the year totaled $1.956 billion, an increase of 6 percent from $1.845 billion reported for 1991. The company recorded a net loss of $72.0 million, which includes the impact of special charges and accounting changes. Excluding the impact of these special provisions, 1992 profits were $111.8 million. This compares with $172.2 million on the same basis in 1991.
 Fourth-quarter sales were $482.7 million, up 2 percent from the $472.3 million recorded in the same period a year earlier. Net loss was $5.5 million, which includes the impact of a previously announced special restructuring charge and accounting changes. Before these items, profits for the quarter were $23.7 million, compared with $45.4 million on the same basis in 1991.
 Previously reported quarterly profits for 1992 were restated to reflect the impact of adopting an accounting change for retiree benefits (FAS 106), effective Jan. 1, 1992.
 "This was probably the most challenging year in Dow Corning's history -- one affected by unique events and circumstances," said Edward Steinhoff, vice president and chief financial officer.
 Dow Corning recorded $69 million pre-tax (or $46 million after-tax) to cover expenses related to the breast implant issue. The company also recorded after-tax charges of approximately $26 million to cover restructuring expenses and $129 million to reflect a change in accounting methods for retiree benefits.
 Steinhoff noted 1992 sales growth continued to be significant in the Pacific Rim countries, and U.S. sales were up slightly over the previous year. However, troubled economies in Japan, Brazil and Europe kept overall growth below expectations, he said.
 "Global economic conditions made doing business -- any business -- difficult in 1992," Steinhoff said. "With only modest revenue growth and an inability to get needed price increases, operating profits declined."
 As a result of its ongoing strategic repositioning, Dow Corning in 1992 acquired ARA-Werke Kraemer GmbH, a German sealants firm, and purchased an additional 40 percent interest in Lucky-DC Silicone Co., Ltd., a Korean joint venture.
 Dow Corning also closed a manufacturing subsidiary in Brazil, sold its antiperspirant salts business, and offered a silicon-metal manufacturing plant and its medical device business for sale.
 Steinhoff said the company in 1993 expects to see tangible results of a worldwide corporate effort to control expenses and hopes to achieve price increases.
 "With many one-time expenses behind us -- and the U.S. economy in moderate recovery -- we expect to get our financial performance back on track in 1993," Steinhoff said.
 "We continue to be a company with strong customer focus, advanced technologies and world-class quality, and that positions us well for the future."
 Dow Corning Corporation, world leader in the production of silicones, is equally owned by The Dow Chemical Company (NYSE: DOW) and Corning Incorporated (NYSE: GLW). About half of Dow Corning's sales are outside the U.S.
 -0- 1/27/93
 /CONTACT: Kara Kuchinic-Wittenberg of Dow Corning, 517-496-5994/
 (DOW GLW)


CO: Dow Corning Corporation ST: Michigan IN: CHM SU: ERN

ML-DH -- DE007 -- 9464 01/27/93 09:02 EST
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Date:Jan 27, 1993
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