Wacker Ends Fiscal Year 2010 with new Record Figures
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According to preliminary figures and as expected, Wacker Chemie AG set new sales and earnings records in 2010. The Munich-based chemical company posted total sales of €4.75 billion in 2010, up some 28 percent year over year. Strong sales volumes due to high customer demand were the main factor behind the sales increase.
According to preliminary figures, earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to some €1.19 billion (2009: €607 million) – thus nearly doubling compared with the previous year. Earnings growth was largely the result of higher sales volumes and revenues, as well as increased plant utilization, which benefited specific production costs. Earnings before interest and taxes (EBIT) are estimated to reach €760 million in 2010 (2009: €27 million) according to preliminary calculations. Net income for the year is expected at around €495 million (2009: €-75 million).
In fiscal 2010, Wacker’s investments (including acquisitions) amounted to some €690 million (2009: €740 million) according to preliminary figures. Wacker financed these completely through cashflow from operating activities. In terms of net financial liabilities, Wacker posted a surplus of around €260 million (2009: €-76 million) at the end of 2010. Investment spending focused on the Group’s strategic growth projects, primarily concerning hyperpure polysilicon production facilities under construction at the company’s Nünchritz (Germany) site.
Customer demand remained at a high level in Q4 2010. Group sales from October through December 2010 amounted to €1.21 billion (Q4 2009: €935 million) – up 29 percent against the prior-year period. Sales dropped by close to 5 percent compared to Q3 2010 (€1.27 billion) due to the usual seasonal effects, particularly in construction-related business.Wacker’s Q4 2010 EBITDA reached some €290 million (Q4 2009: €95 million).
Wacker’s chemical divisions generated total sales of some €600 million between October and December 2010 (Q4 2009: €519 million) – thus up 16 percent against the prior-year quarter. In Q4 2010, chemical divisions’ EBITDA climbed over 40 percent to about €50 million (Q4 2009: €35 million). Two non-recurring effects had an impact on last fiscal year’s figure. In Q4, Wacker established provisions of €50 million for expected future losses from its silicone business in China caused by higher transfer prices for siloxane from its joint venture with Dow Corning. In contrast, the sale of Wacker’s share in US-based Planar Solutions improved Group EBITDA by €20 million. In early December, former partner FUJIFILM Electronic Materials acquired Wacker’s 50-percent share in this joint venture. Planar Solutions produces CMP slurries for the surface treatment of semiconductors and purchases Wacker’s HDK® pyrogenic silica to do so.
The semiconductor segment grew even faster than chemical-related business. Siltronic generated Q4 2010 sales of around €270 million (Q4 2009: €184 million), thereby exceeding the prior-year period’s level by 46 percent. Higher sales volumes and, in some cases, higher prices contributed to this increase. Siltronic’s EBITDA from October through December 2010 amounted to almost €40 million (Q4 2009: €-23 million), thus outperforming the prior-year period’s figure by more than €60 million. Siltronic’s Q4 EBITDA was higher quarter over quarter as well (Q3 2010: €32 million).
Hyperpure polycrystalline silicon business remained strong. Sales at WACKER POLYSILICON rose 38 percent to around €370 million in Q4 2010 (Q4 2009: €269 million). In the same period, EBITDA grew almost 60 percent to some €205 million (Q4 2009: €130 million). Thus, the division posted an EBITDA margin clearly above 50 percent in Q4 2010, as in the prior quarter. In total, WACKER POLYSILICON produced and sold over 30,000 metric tons of hyperpure polysilicon in 2010.
“Wacker shook off the effects of the world economic crisis faster than anticipated and finished 2010 with new record figures,” said CEO Rudolf Staudigl. “Our customers’ demand for our products remains strong and we kicked off the new year well – with a business trend that continues to develop positively.”
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