WACKER Achieves Turnaround Despite On-Going Market Weakness

02-Aug-2002

WACKER improved its position in the first half of 2002, despite a ten-percent drop in consolidated sales compared to the high prior-year level. Group sales for the first half of 2002 were EUR 1.4 billion. Significant price pressure in almost all markets played a major role, negatively impacting sales revenues.

Following last year's severe setback in the semiconductor industry, recovering demand in early 2002 allowed all our domestic and international plants to return to full capacity without short hours by late April. A sharp revival of the semiconductor industry in the second half of 2002 is no longer expected.

WACKER's chemical operations registered increased sales volumes despite continuing weakness in the economy and the enormous price pressures also dominating this sector.

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All business divisions reported positive EBITs, thanks to ongoing cost saving programs initiated in previous years.

The Group posted a positive net profit for the first half of the year, exceeding that of the year-ago period, even though the first six months of 2001 weren't as negatively impacted by economic trends.

Because WACKER's cost reduction strategies will continue to expand in the coming months, we also expect a positive annual net profit for fiscal 2002, despite stagnant sales.

Dr. Peter-Alexander Wacker, President & CEO, issued a positive assessment of the Group's ability to meet planned goals in the face of both negative price trends and a continuing downturn. His conclusion:

"Results for the first half of 2002 confirm our ability to consolidate WACKER's position in the market even under adverse conditions and our ability to achieve planned goals based on a portfolio well balanced in terms of both region and product."

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