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Financial Figures/Balance Sheet
Subtitle: - Sales climb 3 percent to 4.91 billion
- At 1.1 billion, EBITDA remains 8 percent below prior-year figure
- Full-year 2011 EBIT at around 600 million, net income of some 350 million
- Around 980 million invested in growth projects financed from company's own
- CEO Rudolf Staudigl: Weak semiconductor and solar demand slowed our business
Munich (euro adhoc) - January 26, 2012 - In fiscal 2011, Wacker Chemie AG
continued to increase its sales compared to the prior year. According to
preliminary calculations, the Munich-based chemical company achieved total sales
of EUR4.91 billion in 2011 (2010: EUR4.75 billion), up over 3 percent year over
year. This slight sales rise stemmed mainly from volume gains, as well as higher
prices for some products. In contrast, a weaker US dollar compared with 2010
slowed sales growth.
According to preliminary figures, earnings before interest, taxes, depreciation
and amortization (EBITDA) amounted to around EUR1.10 billion (2010: EUR1.19
billion), - down some 8 percent year over year. Earnings before interest and
taxes (EBIT) are estimated to reach about EUR600 million in 2011 (2010: EUR765
million) according to preliminary calculations. Impairments on fixed assets
totaling some EUR40 million had an impact here, of which around EUR15 million
are due to closure of the Group´s semiconductor plant in Hikari, Japan. WACKER
Group´s net income for 2011 is expected to be some EUR350 million (2010: EUR497
The main reason behind the earnings decline was weak Q4 2011 business, primarily
in the semiconductor and solar industries. In the year-end quarter, EBITDA
remained below the Q4 2010 level at all business divisions. Significantly higher
year-over-year costs for raw materials and energy slowed the Group´s earnings
trend. Price increases meant that WACKER spent around EUR160 million more on raw
materials and energy in 2011 than a year earlier.
"Our business developed well over the first nine months," said CEO Rudolf
Staudigl. "The decline in semiconductor and solar demand was stronger than we
had expected and caused Q4 figures to come in below our estimate. Overall, we
slightly increased our full-year sales with an operating result near the high
WACKER´s investments amounted to some EUR980 million in 2011 (2010: EUR695
million) according to preliminary figures. WACKER financed these investments
through cash flow from operating activities including advance payments by
customers. In terms of net financial liabilities, WACKER posted a surplus of
around EUR100 million (2010: EUR264 million) at the end of 2011.
Investment spending in 2011 focused on the Group´s strategic growth projects.
These primarily include facilities for producing hyperpure polycrystalline
silicon in Nünchritz and Charleston, Tennessee (USA). At its Nünchritz site,
WACKER started polysilicon production in October. Construction of the new
production site in Charleston progressed well in 2011.
In Q4 2011, the Group´s business developed significantly weaker than in the
preceding quarters. Demand for semiconductor wafers and solar-grade silicon, in
particular, was at a low level, also due to customers reducing inventories. At
the Group´s chemical divisions, the normal seasonal effects on business -
particularly with the construction sector - had a stronger impact than a year
earlier. In total, Group sales from October through December 2011 amounted to
EUR1.01 billion (Q4 2010: EUR1.21 billion). This is 16 percent lower than in the
comparable period a year ago. Against Q3 2011 (EUR1.28 billion), sales dropped
21 percent. WACKER´s fourth quarter EBITDA reached some EUR110 million (Q4 2010:
In the year-end quarter of 2011, several non-recurring effects influenced
earnings in contrasting ways - reducing EBITDA by, on balance, some EUR15
million. Due to the termination of supply contracts with customers exiting the
solar business, WACKER POLYSILICON retained advance payments and indemnity
payments totaling around EUR65 million. Over and above the standards specified
in Germany´s so-called "Heubeck" tables, WACKER added a further amount of some
EUR30 million to its pension provisions to take account of the higher life
expectancy of the Group´s pension-fund beneficiaries. Obligations for the
closure of the wafer plant in Hikari, Japan - announced in early December -
reduced Siltronic´s fourth-quarter EBITDA by some EUR50 million.
The chemical divisions generated total sales in Q4 2011 of around EUR605 million
(Q4 2010: EUR607 million), thereby nearly reaching the prior-year level.
Chemical divisions´ EBITDA amounted to approximately EUR25 million in Q4 2011
(Q4 2010: EUR49 million), thus dropping by about half year over year. In
addition to this winter season´s stronger decline in demand - e.g. for
construction products - higher raw-material costs and lower prices for some
silicone products also had an impact here.
The Group´s semiconductor business posted Q4 2011 sales and EBITDA that were
significantly lower compared with both the prior-year and prior-quarter figures.
In the fourth quarter of 2011, Siltronic generated total sales of around EUR180
million - a drop of 33 percent from a year earlier (Q4 2010: EUR270 million).
Dampened expectations for electronics-sector demand and Siltronic customers´
reduction of inventories were the reasons behind markedly lower silicon-wafer
sales volumes compared to both the prior-year quarter and the preceding quarter.
Siltronic´s EBITDA from October through December 2011 amounted to roughly EUR-60
million (Q4 2010: EUR37 million). Beside weak business in the final quarter,
obligations of EUR50 million for the announced closure of the site in Hikari,
Japan, were a further key factor in this earnings decline. Adjusted for this
non-recurring effect, Siltronic´s fourth-quarter EBITDA was EUR-10 million.
At WACKER POLYSILICON, high customer inventory levels and the consolidation
process in the solar industry clearly left their mark on fourth-quarter figures.
The division reported total sales of some EUR255 million in the three months to
the end of December 2011 (Q4 2010: EUR374 million) - a drop of just under 32
percent. In the same period, EBITDA fell approximately 22 percent to about
EUR165 million (Q4 2010: EUR211 million). This includes retained advance
payments and indemnity payments totaling EUR65 million from the termination of
supply contracts with customers exiting the solar business.
Customer demand rebounded in the first few weeks of 2012. Although prices for
semiconductor wafers continued to decline, WACKER is currently experiencing
sales-volume increases at its chemical divisions, as well as for semiconductor
wafers and polysilicon compared to Q4 2011.
The Q4 and fiscal 2011 figures and forecasts in this press release are
preliminary. Wacker Chemie AG will publish its Q4 Report and Annual Report 2011
on March 14, 2012.
This press release contains forward-looking statements based on assumptions and
estimates of WACKER´s Executive Board. Although we assume the expectations in
these forwardlooking statements are realistic, we cannot guarantee they will
prove to be correct. The assumptions may harbor risks and uncertainties that may
cause the actual figures to differ considerably from the forward-looking
statements. Factors that may cause such discrepancies include, among other
things, changes in the economic and business environment, variations in exchange
and interest rates, the introduction of competing products, lack of acceptance
for new products or services, and changes in corporate strategy. WACKER does not
plan to update the forwardlooking statements, nor does it assume the obligation
to do so.
Further inquiry note:
Media Relations & Information
Tel.: +49 (0)89 6279 1830
end of announcement euro adhoc
company: Wacker Chemie AG
phone: +49 (0) 89 6279 01
FAX: +49 (0) 89 6279 1770
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