Corning Expects Charges Related to Dow Corning Venture

   By Tess Stynes 
 

Corning Inc. (GLW) said its fourth-quarter earnings will include about a net $100 million in charges stemming from its interest in Dow Corning Corp.

In a regulatory filing, Corning said its quarterly results are expected to include a $400 million gain, tied to a reduction in the venture's estimates of remaining obligations under a settlement program for breast implant product lawsuits that led Dow Corning to file for bankruptcy in May 1995.

During the 1990s, litigation by thousands of women alleged that systemic illnesses including lupus, rheumatoid arthritis and scleroderma had been caused by silicone seeping through the body. Such contentions led to multibillion-dollar settlements with Dow Corning and other manufacturers.

The fourth-quarter items also include charges of about $500 million related to Dow Corning's recent decision to permanently abandon its Hemlock Semiconductor facility in Clarksville, Tenn. Dow Corning determined the Clarkville site, which produced polycrystalline silicon used in solar products wouldn't be economically viable amid a glut of supply in the sector and the continuing impact of tariffs on polycrystalline silicon imported into China.

Hemlock Semiconductor is comprised of several joint venture companies majority owned by Dow Corning Corp.

Write to Tess Stynes at [e-mail]

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