EANS-News: Wacker Chemie AG / WACKER achieves new record figures in 2008 and prepares for a difficult year in fiscal 2009

- Net income increases 4 percent in 2008 to €438 million (2007:
€422m)
- Earnings per share rise to €8.84 (2007: €8.49), dividend of
€1.80 proposed
- EBITDA reaches €1.06 billion (2007: €1.00bn)
-
Sales up 14 percent to €4.30 billion (2007: €3.78bn)
- For 2009,
WACKER is expecting sales and EBITDA below prior-year levels

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Munich (euro adhoc) - March 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 EUR1.06
billion (2007: EUR1.00bn). The Group´s net income after taxes totaled
EUR438 million (2007: EUR422m) with a tax rate of 32 percent (2007:
33 percent). Earnings per share rose to EUR8.84 (2007: EUR8.49). 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 EUR4.30 billion in 2008
(2007: EUR3.78bn). 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. EUR3.35 billion (2007:
EUR3.06bn) 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."

Investments The Group´s investments grew markedly in fiscal 2008.
Asset additions reached EUR916 million (2007: EUR699m) - up 31
percent. Most of the funding flowed into production facilities for
polysilicon, siloxane, silicon wafers and dispersible polymer
powders.

EUR171 million was spent on the complete acquisition of the two
partner companies Air Products Polymers (APP) and Wacker Polymer
Systems (WPS). Full consolidation of these activities within the
WACKER Group took effect from February 1, 2008. WACKER´s integration
of APP sites was successfully completed by year-end 2008.

In October, WACKER decided to further expand its polysilicon
production capacity. With a nominal capacity of 10,000 metric tons
per year, "Expansion Stage 9" is to be built at the company´s
Nünchritz (Saxony) site. Capital expenditures amount to around EUR760
million. Burghausen´s (Bavaria) "Expansion Stage 8" - already under
construction - is to be extended from 7,000 to 10,000 metric tons per
year. WACKER is investing around EUR100 million for this.

Employees At year-end 2008, WACKER had 15,922 employees worldwide,
878 more than the prior-year number. The main reason for this
increase was the integration of former APP employees. On the
reporting date, WACKER´s German sites had 12,110 employees and
international sites 3,812.

Net Cash Flow, Net Financial Debt and Equity Ratio Net cash flow
reached EUR22 million in fiscal 2008 (2007: EUR644m). This decline of
EUR622 million is essentially based on two factors: whereas
investment-activity outflows were some EUR400 million higher than in
the prior year, received prepayments dropped by over EUR200 million
compared to 2007. 2008 prepayments reached EUR198 million, thus
remaining on a high level. For net financial liabilities - taking
account of liquidity of EUR305 million - this results in a credit
balance of EUR33 million as per the December 31, 2008 reporting date.
Moreover, WACKER has sufficient unused credit lines. Effective
December 31, 2008, the WACKER Group´s balance-sheet total made clear
gains of 18 percent - up EUR707 million to EUR4.63 billion (2007:
EUR3.92bn). Primarily due to the high net income, the Group´s equity
on the reporting date rose EUR217 million to EUR2.08 billion (2007:
EUR1.87bn) - an increase of 12 percent. This results in an equity
ratio of 45.0 percent (2007: 47.6 percent).

Business Divisions Siltronic´s 2008 sales amounted to EUR1.36 billion
(2007: EUR1.45bn) - a 6.3 percent decline. The reason for the sales
drop was weak semiconductor-sector demand, which particularly
impacted Siltronic´s Q4 business. By selling monocrystals and other
materials to the solar industry, Siltronic partially offset its lower
semiconductor-sector sales. The division´s EBITDA equaled EUR357
million in 2008 (2007: EUR478m) - down 25 percent. Key factors for
the earnings trend included declining average wafer prices and high
average euro/dollar exchange rates. In contrast, sales of silicon
monocrystals substantially bolstered Siltronic´s profitability.

WACKER SILICONES´ total sales rose to EUR1.41 billion in fiscal 2008
(2007: EUR1.36bn) - up 4 percent. Sales volumes grew thanks to
increasing demand for silicone products. At the same time, the
division achieved higher market prices. Exchange-rate effects,
however, impeded its sales development. EBITDA was lower compared to
the prior year. At EUR168 million (2007: EUR227m), it was 26 percent
lower year on year. Raw-material costs, particularly for silicon
metal, were significantly higher on average in 2008 compared to the
prior-year period. The same applies to energy and transport
expenditures.

At WACKER POLYMERS, total 2008 sales rose appreciably. They increased
37 percent to EUR868 million (2007: EUR633m), primarily due to
consolidation of APP´s dispersion business effective February 1,
2008. The construction-sector downturn, in contrast, dampened the
sales trend. At WACKER POLYMERS, EBITDA amounted to EUR109 million
(2007: EUR107m) - up 2 percent. High raw-material and energy prices,
as well as the unfavorable euro/dollar exchange rate restrained the
division´s profitability.

In 2008, WACKER POLYSILICON forged ahead, building on its prior-year
successes. Total sales climbed 81 percent to EUR828 million (2007:
EUR457m). Higher volumes stemming from production-capacity expansion
fueled sales, as did higher prices. Polysilicon output rose over 40
percent compared to 2007, reaching 11,900 metric tons. Uncontracted
volumes available at short notice were sold at attractive terms
throughout 2008. For the first time, growth was bolstered by the
WACKER SCHOTT Solar joint venture, which - thanks to its new
Jena-based production facility for multicrystalline silicon wafers -
generated sales in the double-digit millions. Despite higher energy
and raw-material costs, EBITDA grew even more than sales. It jumped
132 percent to EUR422 million (2007: EUR182m).

WACKER FINE CHEMICALS generated total 2008 sales of EUR98 million
(2007: EUR112m) - down 13 percent year on year due to consolidation
measures. WACKER stopped making some of its custom fine chemicals and
catalog products. Higher sales of biotech products, such as
biologics, cyclodextrins and cysteine, did not quite compensate for
the shortfall. WACKER FINE CHEMICALS´ EBITDA was EUR9 million in 2008
(2007: EUR10m), nearly matching the previous year´s level.

Proposal on Appropriation of Profits In accordance with German
Commercial Code accounting rules, Wacker Chemie AG posted a retained
profit of EUR576.9 million in 2008. The Executive and Supervisory
Boards will propose a dividend of EUR1.80 at the Annual General
Meeting. This proposal lets shareholders participate in the good
result that WACKER achieved in 2008, while simultaneously allowing
for the expected decline in business in 2009. The payout for fiscal
2007 was EUR2.25, plus there was a special bonus of EUR0.75. Based on
the number of dividend-entitled shares as per December 31, 2008, the
cash dividend corresponds to a payout of EUR89.4 million. Calculated
in relation to WACKER´s average share price in 2008, the dividend
yield is 1.5 percent. The Executive and Supervisory Boards will
propose to shareholders at the Annual General Meeting that the
remaining profit be credited to retained earnings.

Outlook WACKER expects a significant economic downturn in 2009.
Global GDP will rise by less than 1 percent. Despite this figure, it
is currently very difficult to estimate the effects of the financial
crisis on the real economy, since various scenarios could occur.
WACKER estimates that its silicon-wafer business will have a
particularly difficult time in fiscal 2009. Currently, no reliable
forecast is possible for WACKER SILICONES or WACKER POLYMERS. Despite
the difficult economic environment, the Group sees growth potential
in 2009 at its WACKER POLYSILICON and WACKER FINE CHEMICALS
divisions, which will profit from the expansion of plants and product
lines. From today´s vantage point, WACKER expects an overall drop in
sales and EBITDA in the current fiscal year. The Group anticipates
positive effects from raw-material and energy costs, which will
probably be lower than in 2008.

WACKER already decided on a catalog of measures in Q4 2008 to counter
and thereby limit the downturn´s impact. Measures include budget
cuts, hiring restraints, modified investment planning and secure
operational financing. As regards financing, WACKER already extended
a EUR300 million syndicated credit facility in 2008 by another year
to 2013, among other measures. Furthermore, the Group has secured new
three-year credit lines this year, totaling almost EUR200 million.

Due to the difficult global economic situation in 2009, WACKER
applied for short-time work in January for Siltronic AG and in
February for Wacker Chemie AG. The measure will initially last six
months in each case. This means that individual production facilities
can adjust employee numbers flexibly to reflect their specific order
and capacity-utilization levels. Some 6,000 production employees work
at WACKER in Germany.

Regardless of the currently difficult economic situation worldwide,
WACKER´s products, global presence, high level of production and
plant expertise, employees and seasoned customer relationships
represent strengths that will continue to ensure the company´s
long-term success in the future. WACKER´s product portfolio
outstandingly serves key megatrends. Thanks to its strong
international positioning, the Group sees good opportunities to
significantly boost its market share in tomorrow´s key growth regions
over the coming years. WACKER also has growth opportunities through
production-capacity expansion. Consequently, WACKER expects to show
further significant growth in the medium term.

WACKER's Key Figures
|EUR million |2008 |2007 |change | |
| | | |in % | |
|Sales |4,298.1 |3,781.3 |13.7 | |
|EBITDA |1,055.2 |1,001.5 |5.4 | |
|EBIT |647.9 |649.6 |-0.3 | |
|Net income |438.3 |422.2 |3.8 | |
|Earnings per share |8.84 |8.49 |4.1 | |
|EUR | | | | |
|ROCE |25.7% |25.3% |- | |
| | | | | |
|Balance Sheet/Cash | | | | |
|Flow | | | | |
| | | | | |
|Total assets |4,625.1 |3,918.1 |18.0 | |
|Equity |2,082.8 |1,865.6 |11.6 | |
|Equity ratio |45.0% |47.6% |- | |
|Investments (incl. | | | | |
|financial assets) |916.3 |699.3 |31.0 | |
|Payments for |171.2 |- |- | |
|acquisitions | | | | |
|Depreciation (incl.| | | | |
|financial assets) |407.3 |351.9 |15.7 | |
|Net cash flow |21.7 |643.7 |-96.6 | |
| | | | | |
|Research and | | | | |
|Development | | | | |
| | | | | |
|Research and |163.2 |152.5 |7.0 | |
|Development | | | | |
|expenses | | | | |
| | | | | |
|Employees | | | | |
| | | | | |
|Personnel expenses |1,086.0 |1,014.9 |7.0 | |
|Employees (December|15,922 |15,044 |5.8 | |
|31) Number | | | | |
| | | | | |

This press release contains forward-looking statements based on assumptions and
estimates of WACKER´s Executive Board. Although we assume the expectations in
these forward-looking statements are realistic, we cannot guarantee they will
prove to be correct. The assumptions may harbor risks and uncertainties that may
cause the actual figures to differ considerably from the forward-looking
statements. Factors that may cause such discrepancies include, among other
things, changes in the economic and business environment, variations in exchange
and interest rates, the introduction of competing products, lack of acceptance
for new products or services, and changes in corporate strategy. WACKER does not
plan to update the forward-looking statements, nor does it assume the obligation
to do so.

end of announcement euro adhoc
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ots Originaltext: Wacker Chemie AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Christof Bachmair

Media Relations & Information

Tel.: +49 (0)89 6279 1830

E-Mail: christof.bachmair@wacker.com

Branche: Chemicals
ISIN: DE000WCH8881
WKN: WCH888
Index: Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX,
Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard