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Subtitle: - Based on preliminary figures, year-on-year sales down just under 6
percent at 4.63 billion
- EBITDA of 787 million 29 percent below prior-year figure
- EBIT of 258 million for full-year 2012, with net income at 107 million
- CEO Rudolf Staudigl: We are pleased with our chemical divisions performance
last year, but it couldnt fully offset the decline in polysilicon prices
Financial Figures/Balance Sheet
Munich (euro adhoc) - February 7, 2013 - As expected, Wacker Chemie AG generated
lower sales and earnings in 2012 than in the prior year. According to
preliminary calculations, the Munich-based chemical group achieved total sales
of EUR4.63 billion in 2012 (2011: EUR4.91 billion), almost 6 percent below the
prior-year figure. The decline is chiefly due to lower prices for polysilicon
and semiconductor wafers. Altogether, price effects reduced 2012's consolidated
sales by EUR700 million, or by over 14 percent. The chemical divisions, in
contrast, actually increased their sales performance by 5 percent overall, with
higher volumes and positive exchange-rate effects offsetting the impact of price
competition.
Based on preliminary figures, earnings before interest, taxes, depreciation and
amortization (EBITDA) amounted to around EUR787 million (2011: EUR1.1 billion) -
down 29 percent year over year. Earnings before interest and taxes (EBIT) in
2012 reached EUR258 million (2011: EUR603 million) according to preliminary
calculations. The WACKER Group's net income for 2012 amounts to EUR107 million
(2011: EUR356 million).
The earnings decline is mostly due to the overcapacities affecting the
photovoltaic industry. Solar-silicon prices halved over the last 12 months.
Strongly growing demand for polymers, however, helped WACKER's chemical
divisions increase their year-on-year EBITDA by some 15 percent.
Investments and Net Financial Liabilities
WACKER's capital expenditures amounted to some EUR1.1 billion in 2012 (2011:
EUR981 million) according to preliminary figures. The major part of investments
was dedicated to new facilities for producing hyperpure polysilicon. Additional
funds flowed into the expansion of production capacities for polymer dispersions
and polyvinyl acetate solid resins in China and South Korea. Capital
expenditures also went into pro rata financing of WACKER's siloxane-production
joint venture with Dow Corning in China. WACKER funded its investments out of
its operating cash flow, as well as from customer advance payments and borrowed
funds. The Group's net financial liabilities amounted to about EUR701 million as
of December 31, 2012 (Dec. 31, 2011: net financial receivables of EUR96
million).
"Last year's capital expenditures were the highest in the history of the WACKER
Group," said CFO Joachim Rauhut. "By investing in particularly capital-intensive
plants, we reinforced our strategic footing as one of the market leaders in
silicon and silicone chemistry. These investments are now largely complete.
That's why we expect our 2013 investments to come down by almost 50 percent
compared to 2012, thus approaching our level of depreciation which is at EUR550
million. This will significantly benefit our cash flow."
Business Performance in Q4 2012
During Q4 2012, the WACKER Group's business was shaped by the usual seasonal
influences and by persistent price pressure on polysilicon and semiconductor
wafers. In total, Group sales from October through December 2012 amounted to
EUR1.02 billion (Q4 2011: EUR1.01 billion). Sales were thus in line with the
previous year's level. The Group's fourth-quarter EBITDA reached EUR130 million,
an increase of about 17 percent year over year (Q4 2011: EUR111 million).
The chemical divisions continued to perform well between October and December
2012, posting higher sales as well as higher earnings compared with the prior
year. Their sales in Q4 2012 totaled EUR647 million (Q4 2011: EUR606 million).
This rise of just under 7 percent stemmed in part from somewhat higher volumes
than in 2011, and from positive exchange-rate effects. EBITDA at the chemical
divisions amounted to roughly EUR44 million in Q4 2012 - an increase of EUR20
million from a year ago (Q4 2011: EUR24 million). "We are pleased with our
chemical divisions' performance last year, especially in polymer products," said
CEO Rudolf Staudigl. "Last year's sales and earnings growth in these divisions
underscores their stability and effectiveness."
Semiconductor sales were slightly higher in the fourth quarter of 2012 than in
the comparative prior-year period amid difficult market conditions. In Q4 2012,
Siltronic generated total sales of around EUR185 million (Q4 2011: EUR180
million). Siltronic's EBITDA for October through December 2012 amounted to EUR4
million (Q4 2011: EUR-59 million). The prior-year figure had been weighed down
by obligations of about EUR50 million relating to the closure of the Hikari site
in Japan.
At WACKER POLYSILICON, fourth-quarter sales and earnings were held back in
particular by substantially lower year-on-year solar silicon prices. The
division posted total sales of EUR213 million in the three months through the
end of December 2012 (Q4 2011: EUR256 million) - a drop of just under 17
percent. In the same period, EBITDA fell 53 percent to EUR78 million (Q4 2011:
EUR165 million). Q4 2012 EBITDA included about EUR55 million resulting from
retained advance payments and damages relating to terminated customer contracts.
"In our polysilicon business, price pressure, high inventory levels and the
difficult financial situation of many market players clearly left their mark on
2012," explained Staudigl. "Recent weeks have provided encouraging signals
indicating additional photovoltaic expansion, especially in China and the USA.
That could result not only in improved volumes, but also in better prices for
solar silicon in the future. Yet, at the same time, we are still facing the risk
of a trade conflict between China and Europe in the photovoltaic sector."
During the first four weeks of 2013, there have been no improvements in the
conditions underlying semiconductor-wafer business. Taking into account the
normal seasonal effects occurring in their business during the winter months,
WACKER's chemical divisions are reporting continued strong demand.
The Q4 and fiscal 2012 figures and forecasts in this press release are
preliminary. Wacker Chemie AG will publish its Q4 Report and Annual Report 2012
on March 14, 2013.
Further inquiry note:
Christof Bachmair
Media Relations & Information
Tel.: +49 (0)89 6279 1830
E-Mail: christof.bachmair@wacker.com
end of announcement euro adhoc
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company: Wacker Chemie AG
Hanns-Seidel-Platz 4
D-81737 München
phone: +49 (0) 89 6279 01
FAX: +49 (0) 89 6279 1770
mail: info@wacker.com
WWW: http://www.wacker.com
sector: Chemicals
ISIN: DE000WCH8881
indexes: MDAX, CDAX, Prime All Share
stockmarkets: free trade: Hannover, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing: Berlin, regulated dealing/prime standard:
Frankfurt
language: English