WACKER posts sales and earnings increase for fiscal 2008

DJ WACKER posts sales and earnings increase for fiscal 2008

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January 28, 2009 - Wacker Chemie AG´s preliminary 2008 figures show that sales 
and operating results (EBITDA) both surpassed prior-year levels. Although the 
global economic downturn impacted WACKER´s fourth-quarter business, the 
Munich-based chemical company increased its full-year sales by 14 percent to 
EUR4.3bn (2007: EUR3.78 bn). The chief growth driver was stronger sales volumes. 
Earnings before interest, taxes, depreciation and amortization (EBITDA) also 
rose once again, reaching EUR1.05bn (2007: EUR1.00bn) and resulting in a 
full-year EBITDA margin of 24.5 percent (2007: 26.5 percent). 
 
According to WACKER´s preliminary figures, investments amounted to some EUR1.1bn 
in 2008 (2007: EUR699.3bn). Capital expenditures focused on strategic growth 
projects, including production capacity increases for polysilicon, the ongoing 
expansion of the Zhangjiagang silicone production site in China, and the 
acquisition of full ownership of Air Products Polymers and Wacker Polymer 
Systems (two former joint ventures). WACKER fully financed these investments 
through cash from operating activities. After offsetting bank liabilities, 
WACKER´s balance of cash and cash equivalents was almost EUR100m at year-end 
2008. 
As expected, Q4 figures not only reflected the normal seasonal slowdown, but 
also the substantial impact of the global economic crisis. Preliminary 
fourth-quarter sales amounted to EUR1.01bn (Q4 2007: EUR920.1m), up 9 percent 
year on year despite economic headwinds. The company´s chemical divisions faced 
falling demand, especially for construction and automotive products. As for 
semiconductor wafers, Q4 saw a further drop in both sales volumes and prices. In 
contrast, hyperpure polycrystalline silicon operations remained very stable. 
Currently, these trends are continuing to influence WACKER´s business 
activities. To lower production costs, WACKER has decided to introduce shorter 
working hours at its German sites and adopt similar measures at its locations 
outside Germany. 
 
WACKER´s fourth-quarter EBITDA was EUR120m, down from EUR205.3m in Q4 2007. This 
drop stemmed chiefly from lower volumes at the Group´s chemical divisions, as 
well as at Siltronic, where weaker prices additionally weighed on profits. At 
WACKER POLYSILICON, fourth-quarter earnings remained stable and strong. Group 
earnings were additionally affected by EUR55m paid to German and foreign pension 
plans, with most of this one-off payment impacting profits. 
 
"We managed to meet our sales and earnings targets for 2008 despite the tough 
fourth quarter," said CEO Rudolf Staudigl. "Our balance-sheet figures are 
completely sound. So, we see ourselves well equipped to meet the challenges of 
the current fiscal year." 
 
The Q4 and fiscal 2008 figures and forecasts in this press release are 
preliminary. Wacker Chemie AG will publish its Q4 Report and 2008 Annual Report 
on March 18, 2009. 
 
This press release contains forward-looking statements based on assumptions and 
estimates of WACKER´s Executive Board. Although we assume the expectations in 
these forward-looking 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 forward-looking statements, nor does it assume the obligation 
to do so. 
 
 
end of announcement                               euro adhoc 
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(END) Dow Jones Newswires

January 28, 2009 01:15 ET (06:15 GMT)