SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest
event reported): January 14, 1994
DOW CORNING CORPORATION
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(Exact name of registrant as specified in its charter)
Michigan 1-7518 38-0495575
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(State or other (Commission (IRS Employer
jurisdiction of file number) Identification No.)
incorporation)
2200 West Salzburg Road, Midland, Michigan 48686-0994
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (517)496-4000
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Page 1 of 3 pages
ITEM 5. OTHER EVENTS
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The following is the text of a press release issued by
Dow Corning Corporation on January 14, 1994:
DOW CORNING ANNOUNCES CHARGE FOR FOURTH QUARTER 1993
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MIDLAND, Mich. - Dow Corning Corp. announced today that it
will take a pre-tax charge of $640 million ($415 million after
tax) for the fourth quarter of 1993. This charge includes the
company's best current estimate of its potential liability for
breast implant litigation based on current settlement
negotiations, and also includes provisions for legal,
administrative and research costs related to breast implants, for
a total of $1.24 billion less expected insurance recoveries of
$600 million. Where appropriate under accounting rules, amounts
have been determined on a present value basis.
Management believes that the company will generate the
financial liquidity required to meet ongoing operational needs
and to participate in the settlement currently being negotiated.
This belief is based on management's estimate of future
operational cash flows, its assessment that recovery of
substantial amounts of settlement obligations from its insurance
carriers is probable and its evaluation of current financing
arrangements.
As breast implant litigation settlement negotiations
continue, additional facts and circumstances may develop which
may require the company to revise the current estimate or to
record additional provisions. Future charges resulting from any
revisions or provisions, if required, could have a material
adverse effect on Dow Corning's financial position or results of
operations in the period or periods in which such charges are
recorded.
"We are encouraged by the progress being made in the
settlement negotiations," said Gary E. Anderson, executive vice
president. "While no settlement agreement has been reached yet,
we believe that a resolution can be found which will be in the
best interests of all parties involved."
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
DOW CORNING CORPORATION
Date: January 14, 1994 R. A. Hazleton
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R. A. Hazleton
President and
Chief Executive Officer
Date: January 14, 1994 J. W. Churchfield
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J. W. Churchfield
Vice President for Planning
and Finance and Chief
Financial Officer
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