EANS-News: WACKER Resumes Growth Course after the Crisis Year of 2009

- Sales-volume and revenue upturn continues in early 2010
-
Consolidated sales should exeed €4 billion in 2010, with
substantially positive net income
- Fiscal year 2009 sales dropped
to €3.72 billion (2008: €4.30 billion)
- 2009 EBITDA reached €607
million (2008: €1.06 billion)
- Net result fell to €-75 million
(2008: €438 million) due to non-recurring charges
- Dividend of
€1.20 proposed

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Financial Figures/Balance Sheet

Subtitle: - Sales-volume and revenue upturn continues in early 2010 -
Consolidated sales should exeed €4 billion in 2010, with
substantially positive net income - Fiscal year 2009 sales dropped to
€3.72 billion (2008: €4.30 billion) - 2009 EBITDA reached €607
million (2008: €1.06 billion) - Net result fell to €-75 million
(2008: €438 million) due to non-recurring charges - Dividend of €1.20
proposed

Munich (euro adhoc) - March 24, 2010 - Wacker Chemie AG forecasts
substantial sales and earnings gains for the current year. The
Munich-based chemical company reported today that the upturn recently
seen in its business fields is ongoing. After the global economic
crisis sent customer demand plummeting in early 2009, sales volumes
steadily recovered during the rest of the year. However, they did not
attain 2008´s level. The volume decline - coupled with lower prices -
brought consolidated sales down 14 percent to EUR3.72 billion in 2009
(2008: EUR4.30 billion).

Earnings fell even further. 2009´s earnings before interest, taxes,
depreciation and amortization (EBITDA) decreased to EUR607 million
(2008: EUR1.06 billion). The main cause was the weak trend in the
Group´s semiconductor segment, where EBITDA dropped EUR520 million
against 2008. Additionally, non-recurring charges reduced WACKER´s
EBITDA by EUR160 million. These charges comprise investment expenses
due to exiting the solar-wafer business, an addition to pension
provisions, and provisions for additional phased-early-retirement
quotas, for working-life accounts and for personnel measures at
WACKER SILICONES and Siltronic. Moreover, earnings before interest
and taxes (EBIT) were impacted by fixed-asset impairments totaling
EUR176 million. Overall, WACKER´s net result for the year fell to
EUR-75 million (2008: EUR438 million).

In the first two months of 2010, every division reported continuing
sales-volume gains. In January and February, consolidated Group sales
were higher compared both to the prior-year period and to the monthly
average in Q4 2009. Provided that the rebound continues during the
rest of the year, WACKER predicts that 2010´s sales will cross the
four-billion-euro mark. Net income for the year, according to the
latest forecasts, is expected to be substantially positive.

"WACKER reported a sound operating performance for 2009 and has
resumed a growth trajectory," said Group CEO Rudolf Staudigl this
Wednesday in Munich. "Adjusted for non-recurring charges, we
generated good EBITDA figures in every division apart from Siltronic.
The demand recovery benefits not only our chemical divisions, but
also our semiconductor activities. In our polysilicon segment, demand
remains consistently high and we can sell our entire output on the
market at attractive prices. Our Group´s financial condition remains
extremely good and the global trends that drive product demand are
unchanged. All these are fundamental factors to generate substantial
sales and earnings growth this year."

Investments The Group´s investments stayed at a high level in 2009.
Asset additions reached EUR740 million (2008: EUR916 million). The
resulting investment ratio in relation to sales was 20 percent.
Spending was mainly on production plants for polysilicon, siloxane
and dispersible polymer powders.

2009´s primary investment focus was on expanding production
capacities for hyperpure polycrystalline silicon. WACKER started up
"Expansion Stage 8" in Burghausen. The facility should ramp to its
planned nominal capacity of 10,000 metric tons annually during the
second quarter of 2010. At Nünchritz, the construction of a new
polysilicon plant also progressed well in 2009. It should come on
stream before the end of 2011, again with an annual nominal capacity
of 10,000 metric tons.

In Nanjing (China), WACKER officially opened a new polymers site last
November. Here, the Group produces dispersible polymer powders and
dispersions for the Chinese market - especially for the construction
industry. With a polymer-powder capacity of 30,000 metric tons per
year, the Nanjing plant is the largest of its kind in China. As a
result, WACKER can now meet the rapidly accelerating demand for
polymer powders - particularly for energy-saving building insulation
- through local production facilities.

Employees At the end of 2009, WACKER had 15,618 employees worldwide,
304 fewer than in 2008. The payroll decline stems from personnel
measures to mitigate the effects of the economic crisis on the Group.
On December 31, 2009, WACKER´s German sites had 11,925 employees and
its international sites 3,693.

Net Cash Flow, Net Financial Liabilities and Equity Ratio In 2009,
net cash flow was EUR-33 million, down EUR55 million (2008: EUR22
million). The decrease was mainly due to the Group´s substan¬tially
reduced net result for the year, to lower advance customer payments
against 2008, and to the continued high level of invest¬ments in
strategic growth projects. Net financial liabilities were EUR76
million on December 31, 2009. In 2008, there had been a liquidity
surplus of EUR33 million. The Group´s total assets on December 31,
2009 were only slightly lower than at the end of 2008, dropping by
just under 2 percent to EUR4.54 billion (2008: EUR4.63 billion). On
the reporting date, equity amounted to EUR1.94 billion (2008: EUR2.08
billion). The main reason for the decline was the net loss recognized
for the year. As a result, the equity ratio was 42.8 percent (2008:
45.0 percent).

Business Divisions In 2009, sales at Siltronic were EUR638 million,
53 percent below the previous year (2008: EUR1.36 billion). The
primary hurdles were weak semiconductor-sector demand for silicon
wafers and a decline in sales of silicon monocrystals and other
materials to the solar industry. Additionally, continued price
pressure for all wafer diameters burdened Siltronic´s business.
2009´s divisional EBITDA was EUR-162 million (2008: EUR357 million).
As announced in early July 2009, Siltronic has introduced a lead-site
strategy to optimize production and make it more flexible, cut costs
and boost productivity. Siltronic is pushing ahead with customer
qualification of the wafers produced at its designated lead sites so
that it can meet customer needs from these locations in the future.

In 2009, total sales at WACKER SILICONES were down on the prior-year
level - dropping 12 percent to EUR1.24 billion (2008: EUR1.41
billion). After a weak start to 2009, sales began to rise from the
second quarter onward. The gains during the year, however, did not
fully compensate for the considerable shortfall back in Q1. Demand
weakness left some production capacities underutilized. On the EBITDA
front, the downtrend was less pronounced. At EUR158 million (2008:
EUR168 million), EBITDA fell 6 percent against 2008. Earnings
profited from cost savings and lower energy and raw-material costs,
but were hampered by reduced sales volumes and increased price
pressure.

WACKER POLYMERS´ total sales declined in 2009, too - down 14 percent
to EUR744 million (2008: EUR868 million). The main reason was lower
sales volumes for dispersible polymer powders and dispersions. The
division, however, improved its EBITDA, which reached EUR117 million
(2008: EUR109 million). While earnings benefited from cost-savings
and lower energy and raw-material costs, they were impeded by weaker
prices.

WACKER POLYSILICON again generated sales gains in 2009. Up 35 percent
to EUR1.12 billion (2008: EUR828.1 million), total sales crossed the
billion-euro mark for the first time. Growth was fueled by additional
Burghausen production volumes, which were successfully placed on the
market. Polysilicon output rose over 50 percent from 2008, reaching
18,100 metric tons. Divisional EBITDA also climbed substantially. At
EUR521 million, it rose a good 23 percent against the previous year
(2008: EUR422 million). One factor weighing on EBITDA was WACKER´s
exit from the WACKER SCHOTT Solar (WSS) joint venture. The pro rata
loss and exit-related expenses reduced WACKER POLYSILICON´s
investment result by EUR52 million. On top of this, lower polysilicon
prices for short-term deliveries hampered business in 2009. Moderate
operating costs and high capacity utilization, though, bolstered the
full-year earnings trend.

In 2009, WACKER FINE CHEMICALS increased total sales by over 7
percent to EUR105 million (2008: EUR98 million). Growth was largely
driven by its gumbase business, which was transferred from WACKER
POLYMERS to WACKER FINE CHEMICALS effective July 1, 2009. This
reorganization has strengthened the division´s food and
food-supplements business. EBITDA reached EUR10 million, up 8 percent
year over year (2008: EUR9 million). The division intensified its
focus on biotechnology. As of January 1, 2010, it has also changed
its name to WACKER BIOSOLUTIONS.

Proposal on Appropriation of Profits In accordance with
commercial-law requirements, Wacker Chemie AG posted a retained
profit of EUR533.4 million in 2009. The Executive and Supervisory
Boards will propose a dividend of EUR1.20 per share at the Annual
Shareholders´ Meeting. Based on the number of dividend-bearing shares
as per December 31, 2009, the cash dividend corresponds to a payout
of EUR59.6 million. Calculated in relation to WACKER´s average share
price in 2009, the dividend yield is 1.4 percent. At the Annual
Shareholders´ Meeting, the Executive and Supervisory Boards will
propose treating the remaining amount as profit carried forward.

Outlook After the sharp downturn of late 2008 and early 2009, the
world economy is back on a moderate growth path. According to
analysts, this upturn will continue during the current year. The
trend, WACKER anticipates, will be somewhat subdued in Europe and the
USA. The outlook for Asia is quite different. Gross domestic product
there is expected to grow strongly, especially in China.

The semiconductor-market recovery will continue in 2010, positively
affecting plant utilization and probably prices, too. WACKER assumes
that these trends will enable Siltronic to generate sales growth. At
the same time, WACKER will press on with its efforts to increase
productivity and cut costs in its semiconductor segment. To do this,
WACKER continues to focus on Asia which is the largest wafer market
and has prioritized greater production-process flexibility. The goal
is to counter demand fluctuations by utilizing capacities fully at
the sites with the best cost structures. Consequently, Siltronic
introduced a new lead-site strategy in mid-2009. As a result, it has
discontinued 150 mm wafer production at Freiberg and transferred
these production volumes to Burghausen. In the 300 mm wafer segment,
Siltronic is focusing production at Freiberg and Singapore. Singapore
is also the lead site for 200 mm wafers. Siltronic plans to
additionally improve its productivity via a further reduction of its
overhead costs.

WACKER SILICONES´ sales revenues are expected to climb in 2010.
Growth will mostly stem from Asia, where demand for silicone products
will continue to rise. At WACKER POLYMERS, sales-volume should
increase in 2010, with Asia again as the fastest-growing market.
WACKER BIOSOLUTIONS´ full-year sales revenues are expected to grow at
a double-digit percentage rate.

WACKER expects that its hyperpure polycrystalline silicon business
will experience further growth on both the production-volume and
demand sides. During the second quarter of 2010, the Group intends to
ramp up Burghausen´s "Expansion Stage 8" to its planned nominal
capacity of 10,000 metric tons annually. Similarly, WACKER will press
on with building its new polysilicon plant at Nünchritz. As a global
quality and cost leader, WACKER sees good opportunities for its
polysilicon business to generate continued, profitable growth, even
amid decreasing prices. Additionally, WACKER POLYSILICON has secured
a large part of its polysilicon production volumes through long-term
agreements. In total, WACKER plans to invest between EUR600 million
and EUR700 million during the current year - the lion´s share being
for ongoing polysilicon expansion projects.

Provided that the economic upturn continues for the rest of the year,
WACKER expects consolidated sales to cross the four-billion-euro mark
in 2010. From today´s vantage point, net income for the year should
be substantially positive.

WACKER´s Key Figures

| |2009 |2008 |Change |
| | | |in % |
|Results / Return | | | |
|Sales EUR million |3,719.3 |4,298.1 |- 13.5 |
|EBITDA EUR million |606.7 |1,055.2 |- 42.5 |
|EBIT EUR million |26.8 |647.9 |- 95.9 |
|Net result for the yearEUR million|- 74.5 |438.3 |> 100 |
|Earnings per share EUR |- 1.43 |8.84 |> 100 |
|ROCE % |0.9 |25.7 |- 96.5 |
| | | | |
|Statement of Financial Position / | | | |
|Statement of Cash Flows | | | |
|Total assets EUR million |4,541.9 |4,625.1 |- 1.8 |
|Equity EUR million |1,942.4 |2,082.8 |- 6.7 |
|Equity ratio % |42.8 |45.0 |- 4.9 |
|Investments (incl. financial |740.1 |916.3 |- 19.2 |
|assets) EUR million | | | |
|Depreciation (incl. financial |579.9 |407.3 |42.4 |
|assets) EUR million | | | |
|Net cash flow EUR million |- 32.9 |21.7 |> 100 |
| | | | |
|Research and Development | | | |
|Research and development expenses |164.0 |163.2 |0.5 |
|EUR million | | | |
| | | | |
|Employees | | | |
|Personnel expenses EUR million |1,090.3 |1,086.0 |0.4 |
|Employees (December 31) Number |15,618 |15,922 |- 1.9 |

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
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Börsen: Frankfurt / regulated dealing/prime standard