Mar 18 2009
For fiscal 2008, Wacker Chemie AG posted new records for both sales and net income. The global economic crisis did, however, increasingly impede sales and earnings in the second half of the year. The result was also impacted by higher energy and raw-material costs, and unfavorable exchange-rate effects. Nevertheless, EBITDA (earnings before interest, taxes, depreciation and amortization) rose by over 5 percent to €1.06 billion (2007: €1.00bn). The Group’s net income after taxes totaled €438 million (2007: €422m) with a tax rate of 32 percent (2007: 33 percent). Earnings per share rose to €8.84 (2007: €8.49). The Group’s ROCE (return on capital employed) continued to rise last year and reached 25.7 percent (2007: 25.3 percent).
Consolidated sales climbed 14 percent to €4.30 billion in 2008 (2007: €3.78bn). The increase is due to the complete takeover of Air Products Polymers’ dispersion business (a former partner company) as well as to volume gains and higher prices. €3.35 billion (2007: €3.06bn) of WACKER’s total sales were generated outside Germany. As a result, international sales accounted for 78 percent of total sales.
WACKER is preparing for a global downturn in 2009. The Group sees good growth prospects for its polysilicon business this year again, as well as at its WACKER FINE CHEMICALS division. The business trend at the three other divisions will be more difficult. From today’s vantage point, WACKER will not reach prior-year sales or EBITDA levels. A reliable forecast of the decline’s extent is currently not possible due to economic uncertainties. WACKER already decided on, and implemented, a series of measures to limit the impact of the economic crisis on the company. Measures include short-time work, temporary plant shutdowns, budget cuts, investment-plan modifications and secure operational financing.
“Following a record year in 2008, we are going to experience significantly rougher waters,” said CEO Rudolf Staudigl in Munich on Wednesday. “Although 2009 won’t be an easy year, we will continue our long-term growth strategy. We intend to maintain our high level of investments in 2009 so that we can tap into growth potential, especially in the solar sector. The major megatrends from which we profit remain unchanged. WACKER has a unique product portfolio, particularly for energy conservation and sustainable energy generation. The same goes for WACKER’s myriad cutting-edge products that help to raise the standard of living in emerging economies. This is why I am optimistic that WACKER will resume its growth path once the global economy has come out of recession.”