EANS-News: WACKER Delivers Strong Sales and Earnings Growth in Q1 2010 Amid High Demand

 Group sales in Q1 2010 rise 22 percent to €1.07 billion

 Earnings before interest, taxes, depreciation and
amortization reach €254 million, up 61 percent year over year

 Net income for the period amounts to €106 million

Full-year sales of over €4 billion and significant EBITDA growth
expected

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quarterly report

Subtitle:  Group sales in Q1 2010 rise 22 percent to €1.07
billion  Earnings before interest, taxes, depreciation and
amortization reach €254 million, up 61 percent year over year
 Net income for the period amounts to €106 million 
Full-year sales of over €4 billion and significant EBITDA growth
expected

Munich (euro adhoc) - April 29, 2010 - Wacker Chemie AG has boosted
its sales and earnings in the first quarter of 2010 amid strong
customer demand. Q1 2010 sales at the Munich-based chemicals Group
climbed 22 percent to EUR1,067.0 million (Q1 2009: EUR872.5 million)
- chiefly due to volume growth. In contrast, sales performance was
held back by lower prices and negative currency effects. Earnings
before interest, taxes, depreciation and amortization (EBITDA) in Q1
amounted to EUR253.7 million (Q1 2009: EUR157.8 million). Up 61
percent on the prior year, EBITDA rose at almost three times the rate
of sales. The higher demand greatly improved plant capacity
utilization. As a result, specific manufacturing costs for many
products were lower than in Q1 2009. For the first time in one and a
half years, the Group´s EBITDA margin - at 23.8 percent - crossed the
20-percent threshold (Q1 2009: 18.1 percent). WACKER Group´s
first-quarter earnings before interest and taxes (EBIT) reached
EUR153.7 million, well over double the prior-year figure (Q1 2009:
EUR58.2 million). Accordingly, WACKER´s EBIT margin rose from 6.7
percent in the first quarter of 2009 to 14.4 percent in Q1 2010. Net
income for the period amounted to EUR105.9 million (Q1 2009: EUR5.5
million). As a result, earnings per share reached EUR2.15 (Q1 2009:
EUR0.17).

WACKER boosted its profitability in both its chemical and
semiconductor segments. At the three chemical segments, EBITDA of
EUR87.0 million (Q1 2009: EUR51.1 million) outstripped the prior-year
figure by 70 percent. With EBITDA of EUR1.2 million, Siltronic has
returned to a profitable level after four quarters with losses (Q1
2009: EUR-60 million). Despite lower polysilicon market prices,
WACKER POLYSILICON succeeded in keeping its profitability very high.
Its EBITDA in the first three months of 2010 came in at EUR157.5
million (Q1 2009: EUR168.1 million). Although 6 percent below the Q1
2009 record, EBITDA was well above the preceding quarters, which were
affected by non recurring items.

The WACKER Group confirms its forecast for substantial full-year
sales and earnings growth in 2010. If the global recovery continues
throughout the year, sales are expected to cross the EUR4 billion
mark. EBITDA is forecast to be much higher than in 2009.

"After the challenges of the last several months, WACKER has made a
very good start to fiscal 2010," said Group CEO Rudolf Staudigl in
Munich on Thursday. "Volumes, sales, and earnings are well above the
prior year figures. We are benefiting from acting decisively at an
early stage, improving our cost structures and increasing our
competitive edge. And we will stay on this course as the economy
recovers. We continue to work on improving the earnings situation at
Siltronic. In our chemical segments, we will focus on boosting
capacity utilization even further. And we continue to invest heavily
in our polysilicon business to tap into market growth and meet
customer demand for top-quality material."

Regions Like the world economy, WACKER´s first-quarter performance
varied widely across the various economic regions. In Germany, sales
stayed roughly at the prior-year level, reaching EUR219.1 million
during the first three months of 2010 (Q1 2009: EUR220.8 million).
Solar-industry sales are the key reason here, with the focus having
shifted further toward Asia. Business clearly picked up, however, in
the rest of Europe, where January-through-March sales climbed some 30
percent to EUR261.8 million (Q1 2009: EUR202.0 million). In
comparison, growth in the Americas was moderate, with sales rising
nearly 15 percent to EUR185.8 million (Q1 2009: EUR162.3 million).
First-quarter business in Asia was very healthy. WACKER boosted sales
there by about 37 percent to EUR364.8 million (Q1 2009: EUR267.0
million), with over half of Asian sales coming from China (including
Taiwan). Accounting for 34 percent of total sales, Asia is by far
WACKER´s most important sales region. In the other regions,
consolidated sales increased 74 percent to EUR35.5 million (Q1 2009:
EUR20.4 million).

Investments and Net Cash Flow In recent months, WACKER has
successfully completed or is currently ramping up several large
investment projects aimed at expanding its global market presence. As
a result, first-quarter investment spending dropped 44 percent year
over year. In total, WACKER invested EUR98.3 million worldwide from
January through March 2010 (Q1 2009: EUR176.8 million). One spending
focus was the polysilicon plant currently under construction at
Nünchritz (Saxony). Another was the development of pyrogenic silica
production facilities at Zhangjiagang (China). Despite high
investments, first-quarter net cash flow was clearly positive at
EUR54.6 million (Q1 2009: EUR70.9 million).

Employees Groupwide, WACKER had 15,733 employees on March 31, 2010
(Dec. 31, 2009: 15,618), a rise of 1 percent. The increase stems from
higher staffing needs due to accelerating demand and to ongoing
expansion projects, especially at WACKER POLYSILICON. At the end of
March 2010, WACKER had 11,979 employees in Germany (Dec. 31, 2009:
11,925) and 3,754 at its international sites (Dec. 31, 2009: 3,693).

Business Divisions In Q1 2010, WACKER SILICONES boosted its total
sales by 39 percent to EUR367.0 million (Q1 2009: EUR264.9 million).
In virtually all business areas, new orders were very strong and
sales reached record levels. Nevertheless, prices are under pressure
in some product segments. Driven by strong demand,
production-capacity utilization in the quarter under review was
markedly above the Q1 2009 level. In several facilities, the
utilization rate reached up to 90 percent. As a result, specific
production costs declined, positively impacting the division´s
earnings. On the downside, earnings were held back by partially lower
product prices, higher costs for methanol (a raw material) and
exchange-rate effects. Overall, WACKER SILICONES posted Q1 2010
EBITDA of EUR62.1 million - more than double the prior-year figure
(Q1 2009: EUR27.7 million). The EBITDA margin for the January 1 to
March 31, 2010 period correspondingly rose to 16.9 percent (Q1 2009:
10.5 percent).

WACKER POLYMERS´ performance was subdued in the first quarter of
2010. At EUR170.8 million, sales were broadly on a par with the
previous year (Q1 2009: EUR172.3 million). The harsh winter meant
that construction-sector demand only picked up tangibly toward the
end of the quarter under review. Asian markets were the main
catalysts of demand. Overall, Q1 2010 sales of dispersible polymer
powders were about 10 percent up on the prior-year quarter, but
prices remained under pressure. WACKER POLYMERS generated EBITDA of
EUR20.1 million during the first three months of 2010 (Q1 2009:
EUR21.5 million). With an EBITDA margin of 11.8 percent (Q1 2009:
12.5 percent), the division´s profitability was slightly below the
prior-year quarter. Alongside lower prices for dispersible polymer
powders and dispersions, higher costs for ethylene (a raw material)
slowed earnings.

In Q1 2010, WACKER BIOSOLUTIONS generated total sales of EUR34.4
million (Q1 2009: EUR21.6 million). This 59 percent rise mainly stems
from the reorganization of the Group´s chewing gum base activities,
which were transferred from WACKER POLYMERS to WACKER BIOSOLUTIONS in
mid-2009. Additionally, sales of cysteine, cyclodextrins and
acetylacetone were higher than a year ago. WACKER BIOSOLUTIONS posted
Q1 2010 EBITDA of EUR4.8 million (Q1 2009: EUR1.9 million). Its
EBITDA margin climbed to 14.0 percent (Q1 2009: 8.8 percent).

With total Q1 sales of EUR323.9 million, WACKER POLYSILICON beat its
prior-year record by 3 percent (Q1 2009: EUR315.0 million).
Production volumes in the first three months of 2010 rose to a new
record level, supported by additional polysilicon capacity from
Expansion Stage 8 (currently in the ramp-up phase). Thanks to the
high quality of the division´s hyperpure polycrystalline silicon, the
entire output could be placed on the market at attractive prices amid
intensifying competition. Although market prices for polysilicon are
lower than a year ago, average prices have stabilized since the
fourth quarter of 2009. Despite the market-price decline compared to
Q1 2009, WACKER POLYSILICON remained highly profitable from January
through March 2010 and achieved an EBITDA margin of 48.6 percent (Q1
2009: 53.4 percent). Earnings before interest, taxes, depreciation
and amortization reached EUR157.5 million in the period under review.
Although 6 percent down on Q1 2009 (EUR168.1 million), EBITDA was
well above the pre¬ceding three quarters, which were impacted by non
recurring items to some extent.

Siltronic profited from a strong rise in silicon-wafer demand during
Q1 2010. The division generated total sales of EUR219.1 million - up
74 percent against the prior-year period, which was especially weak
(Q1 2009: EUR126.0 million). Compared with Q4 2009 (EUR184.4
million), Siltronic´s sales grew 19 percent. Wafer sales by surface
area sold tripled year over year. Plant-capacity utilization was
correspondingly high, averaging 80 percent. For some product types,
plants reached full capacity. On the earnings side, Siltronic also
reported substantial growth for Q1 2010. Earnings were primarily
spurred by the marked increase in capacity utilization compared to a
year ago. Having posted a negative EBITDA of EUR-60.0 million in Q1
2009, Siltronic generated EBITDA of EUR1.2 million in Q1 2010. EBITDA
had still been negative in the fourth quarter of 2009 (EUR-22.6
million). The EBITDA margin is now 0.5 percent (Q1 2009: -47.6
percent).

Outlook After the sharp downturn of 2008 and 2009, the global economy
is back on a growth course. The latest consensus forecast is for a
rebound in global economic output in 2010. The predicted global
recovery will bring a further boost in demand and create fresh sales
opportunities in WACKER´s main sectors of interest, including
chemicals, construction, electronics and photovoltaics. If the world
economy continues to grow during the remainder of the year (as
forecast), WACKER expects sales volumes to increase at every division
during 2010. Regionally, Asia will remain the key growth driver. From
today´s viewpoint, the Group´s full-year sales are expected to exceed
EUR4 billion in 2010, with year-over-year EBITDA growing
substantially.

WACKER´s Key Figures
|EUR million |Q1 2010 |Q1 2009 |Change |
| | | |in % |
|Sales |1,067.0 |872.5 |22.3 |
|EBITDA1 |253.7 |157.8 |60.8 |
|EBITDA margin2 |23.8% |18.1% |31.5 |
|EBIT3 |153.7 |58.2 |>100 |
|EBIT margin2 |14.4% |6.7% |>100 |
| | | | |
|Financial result |-3.3 |-7.1 |53.5 |
|Income before taxes |150.4 |51.1 |>100 |
|Net income for the period |105.9 |5.5 |>100 |
| | | | |
|Earnings per share (EUR) |2.15 |0.17 |>100 |
| | | | |
|Investments (incl. financial|98.3 |176.8 |-44.4 |
|assets) | | | |
|Net cash flow |54.6 |70.9 |-23.0 |
| | | | |
| | | | |
|EUR million |March 31,|March 31,|December 31, |
| |2010 |2009 |2009 |
|Equity |2,073.2 |2,106.1 |1,942.4 |
|Financial liabilities |502.6 |283.9 |439.7 |
|Net financial liabilities |31.5 |-100.7 |76.1 |
|Total assets |4,796.5 |4,705.1 |4,541.9 |
| | | | |
|Employees (number at end of |15,733 |15,851 |15,618 |
|period) | | | |
| | | | |

1 EBITDA is EBIT before depreciation and amortization.
2 Margins are calculated based on sales.
3 EBIT is the result from continuing operations for the period before interest
and other financial results, and income taxes.

Information for editorial offices: The Q1 2010 report can be
downloaded from WACKER´s website (www.wacker.com) under Investor
Relations.

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