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 Euro 4.3bn (2007: Euro 3.78 bn). The chief growth driver was stronger sales volumes. Earnings before interest, taxes, depreciation and amortization (EBITDA) also rose once again, reaching Euro 1.05bn (2007: Euro 1.00bn) 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 Euro 1.1bn in 2008 (2007: Euro 699.3m). 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 Euro 100m 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 Euro 1.01bn (Q4 2007: Euro 920.1m), 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 Euro 120m, down from Euro 205.3m 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 Euro 55m 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."