Wacker Posts Sales of EUR 3.7 Billion for 2009
As expected, Wacker Chemie AG generated lower sales and earnings in 2009 compared to 2008, according to preliminary figures. The upturn in demand experienced since April 2009 continued through the fourth quarter, but did not offset the drop in sales caused by the global economic crisis. The Munich-based company posted consolidated sales of €3.7 billion in 2009, almost 14 percent below the previous year (2008: €4.3bn).
Preliminary earnings before interest, taxes, depreciation and amortization (EBITDA) reached about €600 million, down €455 million or 43 percent from the previous year (2008: €1.055bn). Earnings were chiefly impacted by the extremely difficult business situation in the semiconductor division, where EBITDA fell about €520 million against 2008. Additionally, non-recurring charges reduced 2009’s EBITDA by a total of some €160 million. These charges were mainly due to exiting the WACKER SCHOTT Solar joint venture, to extraordinary pension-provision additions, to provisions for phased early-retirement schemes and working-life accounts, and to provisions for personnel measures at WACKER SILICONES and Siltronic.
On a preliminary basis, earnings before interest and taxes (EBIT) are estimated at around €20 million for 2009 (2008: €647.9m). In addition to the non-recurring charges already mentioned, EBIT includes impairments on fixed assets of almost €180 million at Siltronic and WACKER SILICONES. Totaling about €340 million, the special items will result in negative net income of some €-80 million for the full year (2008: €438.3m).
According to WACKER’s preliminary figures, capital expenditures amounted to about €740 million in 2009 (2008: €916.3m). Spending focused on the Group’s strategic growth projects, especially the ongoing production-capacity expansion for hyperpure polysilicon at Burghausen and Nünchritz. WACKER funded these investments almost entirely through cash flow from operating activities despite the economic crisis. WACKER’s net financial debt totaled about €80 million at year-end 2009.
“Although the global economic crisis has left its mark on our business figures, I think WACKER is on a sound course,” says CEO Rudolf Staudigl. “Our far-sighted accounting policy shown during the last year is an important building block to equip ourselves for the future. Despite posting a loss, we were able to finance our considerable investments in growth projects almost entirely from cash flow thanks to rigorous cash management. Our 2009 investment ratio reached 20 percent. For me, that’s clear proof of WACKER’s financial strength. If the present economic recovery continues, this will give WACKER a good chance of significantly increasing both consolidated sales and net income again in fiscal 2010.”
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