Home Quarter Results DGAP-News: Wacker Chemie AG: AFTER A GOOD FIRST HALF-YEAR, WACKER EXPECTS EBITDA TO BE AT UPPER END OF FORECAST RANGE
DGAP-News: Wacker Chemie AG: AFTER A GOOD FIRST HALF-YEAR, WACKER EXPECTS EBITDA TO BE AT UPPER END OF FORECAST RANGE

DGAP-News: Wacker Chemie AG: AFTER A GOOD FIRST HALF-YEAR, WACKER EXPECTS EBITDA TO BE AT UPPER END OF FORECAST RANGE

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In the second quarter of 2016, Wacker Chemie AG
continued to grow its sales, both year over year and quarter over quarter. The
Munich-based chemical company posted sales of EUR?1,386.2 million in the
reporting quarter (Q2 2015: EUR1,370.5 million), a rise of 1 percent. This
slight increase was caused primarily by substantial year-over-year volume growth
for silicones, polymer products and polysilicon, which enabled WACKER to more
than compensate for price declines - especially affecting polysilicon and
semiconductor wafers - compared with the year-earlier quarter. Against the
preceding quarter (EUR1,314.3 million), sales grew by over 5 percent, with
higher volumes and improved polysilicon prices having a positive impact on the
sales trend.

Group earnings before interest, taxes, depreciation and amortization (EBITDA)
came to EUR300.0 million in Q2 2016. This is 9 percent less than a year ago
(EUR329.0 million), but 31 percent more than a quarter earlier (EUR228.9
million). The EBITDA margin for the reporting quarter was 21.6 percent, after
24.0 percent in Q2 2015 and 17.4 percent in Q1 2016. Group earnings before
interest and taxes (EBIT) amounted to EUR110.9 million in Q2 2016 (Q2 2015:
EUR187.9 million), yielding an EBIT margin of 8.0 percent (Q2 2015: 13.7
percent). Net income for the reporting quarter amounted to EUR58.9 million (Q2
2015: EUR108.2 million) and earnings per share came in at EUR1.15 (Q2 2015:
EUR2.21).

The year-over-year drop in EBITDA was due predominantly to the effect of advance
payments retained and damages received a year ago. In Q2 2015, WACKER had
terminated contractual and delivery relationships with customers from the solar
sector, resulting in special income of EUR86.7 million. For the reporting
quarter, WACKER posted EUR7.0 million in special-income items. Adjusted for
these non-recurring effects, EBITDA grew by around 21 percent year over year.
This growth was primarily attributable to higher sales volumes and good cost
levels.

WACKER has specified its earnings forecast for full-year 2016. EBITDA on a
comparable basis - i.e. adjusted to exclude special income from damages received
and from terminated contractual and delivery relationships with solar customers
- is expected to be between 5 and 10 percent higher than last year. Given its
good performance in the first half of 2016, WACKER now assumes that adjusted
EBITDA will be at the upper end of this range. The company still expects to post
a low single-digit percentage increase in Group sales.

"After the first six months of the current fiscal year, WACKER's operational
performance is on a good trajectory," said CEO Rudolf Staudigl in Munich on
Thursday. "For silicon wafers, volumes were still subdued in Q2 2016 because of
market conditions. In contrast, our chemical divisions and polysilicon business
continued to benefit from strong customer demand. Our sales in the reporting
quarter were also positively influenced by polysilicon prices that were
noticeably better than at the start of the year. Although the risks for the
global economy remain high, we are now confident about reaching the upper end of
the forecast range for our 2016 targets due to our good business performance in
the first half of the year."

Regions
In Q2 2016, Group sales were higher year over year in all regions apart from the
Americas.

The Group's sales in Asia totaled EUR582.0 million in the reporting quarter, up
about 1 percent from last year's figure of EUR577.4 million.

In Europe, WACKER achieved sales of EUR325.6 million in April through June 2016
(Q2 2015: EUR314.1 million), up about 4 percent year over year. Business
performance in Germany was even better, with sales there totaling EUR182.8
million in the reporting quarter, compared with EUR172.1 million a year earlier.
That represented a year-over-year increase of 6 percent.

Sales in the Americas amounted to EUR236.6 million, 4 percent lower than in Q2
2015 (EUR249.8 million) due to price and volume effects.

Capital Expenditures and Net Cash Flow
In Q2 2016, the Group's capital expenditures amounted to EUR88.0 million (Q2
2015: EUR214.2 million), representing a year-over-year decrease of 59 percent.

One focus of capital spending in the reporting quarter was the remaining work
needed to finish the new polysilicon site in Charleston, Tennessee (USA).
Commissioning of the Charleston production facilities proceeded as planned in
the April-through-June period. Funds were also invested to modernize
crystal-pulling facilities and further automate production at Siltronic, as well
as to expand capacities for downstream silicone products.

The Group's net cash flow was EUR126.0 million in Q2 2016, after EUR21.0 million
in Q2 2015, with substantially reduced capital expenditures being the main
reason for this increase.

Employees
Relative to the preceding quarter, the number of WACKER employees worldwide
remained virtually unchanged in Q2 2016. The Group had 17,081 employees as of
June 30, 2016 (March 31, 2016: 17,048). As of the end of the reporting quarter,
WACKER had 12,230 employees in Germany (March 31, 2016: 12,266) and 4,851 at its
international sites (March 31, 2015: 4,782).

Business Divisions
WACKER SILICONESgenerated total sales of EUR514.4 million in April through June
(Q2 2015: EUR506.3 million). This rise of 2 percent was mainly attributable to
volume growth. In contrast, sales were dampened by year-on-year price softening
for a number of product groups and by exchange-rate effects, particularly in
emerging economies. Sales were 5 percent higher than in the preceding quarter
(EUR491.3 million). WACKER SILICONES' EBITDA reached EUR93.7 million in the
reporting quarter, 21 percent higher than a year ago (EUR77.3 million). EBITDA
grew by 7 percent relative to the preceding quarter (EUR87.9 million). In
addition to sales growth, low costs and a high plant-utilization rate averaging
over 90 percent had a positive impact on earnings. The EBITDA margin improved in
Q2 2016 to reach 18.2 percent, after 15.3 percent a year ago and 17.9 percent in
the preceding quarter.

At EUR325.7 million, total sales atWACKER POLYMERSwere 4 percent higher than the
year-earlier figure (EUR314.6 million) and 14 percent above the preceding
quarter (EUR285.9 million). Volumes for dispersions and dispersible polymer
powders grew substantially, both year over year and quarter over quarter. The
division's EBITDA increased to EUR78.2 million in the reporting quarter, after
EUR56.8 million in Q2 2015, up 38 percent. In addition to volume-driven sales
growth, this increase was largely attributable to the very good cost level,
itself in part a result of the high plant-utilization rate of around 90 percent.
Compared with a quarter earlier (EUR64.4 million), EBITDA grew by 21 percent.
The EBITDA margin rose in Q2 2016 to reach 24.0 percent, after 18.1 percent a
year ago and 22.5 percent in the preceding quarter.

WACKER BIOSOLUTIONSgenerated total sales of EUR53.2 million from April through
June 2016 (Q2 2015: EUR52.7 million), up 1 percent on a year ago. Relative to
the preceding quarter (EUR49.6 million), the division's sales were up by 7
percent, with somewhat higher volumes for a number of products being the main
driver of this growth. At EUR9.0 million, second-quarter EBITDA at WACKER
BIOSOLUTIONS was 5 percent below the year-earlier figure (EUR9.5 million) and
down 6 percent on the preceding quarter (EUR9.6 million). Earnings in the
reporting quarter were dampened by maintenance work on production facilities and
by expenses incurred to close down the former production plant in Wuxi, China.
The EBITDA margin came in at 16.9 percent, after 18.0 percent a year ago and
19.4 percent in Q1 2016.

At EUR272.2 million,WACKER POLYSILICON's total sales in the reporting quarter
were some 4 percent higher than a year earlier (EUR261.3 million). Significantly
higher volumes year over year more than compensated for lower polysilicon
prices. The division almost matched its sales figure of the preceding quarter
(EUR273.1 million), largely because average prices were noticeably higher
quarter over quarter. On the other hand, volumes were somewhat lower than in Q1
2016, since less inventory was available for sale. WACKER POLYSILICON's
reporting-quarter EBITDA amounted to EUR77.7 million, compared with EUR161.4
million in Q2 2015. This decline of 52 percent was mainly due to a prior-year
non-recurring effect. In Q2 2015, the division had terminated contractual and
delivery relationships with some solar-sector customers and, as a result, had
retained advance payments and received damages totaling EUR86.7 million. In the
reporting quarter, WACKER posted EUR7.0 million in special income of this kind.
The start-up costs for the new polysilicon site in Charleston, which amounted to
around EUR18 million in the reporting quarter, were another factor reducing the
division's earnings. Compared with the preceding quarter (EUR39.4 million),
EBITDA almost doubled. From April through June 2016, WACKER POLYSILICON's EBITDA
margin came in at 28.5 percent, after 61.8 percent in Q2 2015 and 14.4 percent
in Q1 2016.

Siltronicreported total sales of EUR229.8 million in Q2 2016, down 7 percent
from last year's figure of EUR246.7 million. Somewhat lower volumes - due to
subdued market demand - dampened sales, as did semiconductor wafer prices that
were noticeably lower year over year. Relative to the preceding quarter
(EUR220.6 million), sales were up 4 percent. Siltronic's reporting-quarter
EBITDA amounted to EUR35.0 million, compared with EUR31.4 million in Q2 2015, an
increase of 12 percent. In Q2 2015, EBITDA had been impacted by currency hedging
losses of EUR17.6 million, compared with only EUR2.7 million in the reporting
quarter. Relative to the preceding quarter (EUR23.6 million), EBITDA was up by
around 48 percent, mainly due to sales growth and lower currency hedging losses.
Siltronic's EBITDA margin climbed to 15.2 percent in the reporting quarter,
after 12.7 percent in Q2 2015 and 10.7 percent in Q1 2016.

source-presseportal

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Anand Gupta Editor - EQ Int'l Media Network

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