WACKER significantly boosts sales and earnings in Q2 2007
Geschrieben am 02-08-2007 |
- Q2 group sales rise 15 percent to 959 million - EBITDA grows 33 percent to 261 million and EBITDA margin climbs to 27 percent - Net cash flow reaches 122 million - Earnings per share surge to 2.62 - Expectation of full-year 2007 sales and earnings gains confirmed
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Munich (euro adhoc) - August 2, 2007 - Wacker Chemie AG again significantly boosted year-on-year sales and earnings in Q2 2007. Supported by solid global economic growth, the Munich-based chemical company greatly expanded its manufacturing output and sales volumes. The negative impact of further U.S. dollar weakening and higher raw material and energy costs was more than offset by volume gains. Q2 Group sales accordingly rose 15 percent to EUR959.0 million (Q2 2006: EUR830.4m).
Earnings again grew more strongly than sales, thanks primarily to scale effects from higher manufacturing volumes, productivity-boosting measures, and higher prices in some market segments. From April to June 2007, the Group generated earnings before interest, tax, depreciation and amortization (EBITDA) of EUR260.8 million (Q2 2006: EUR195.7m) - up 33 percent compared to the prior-year period. The EBITDA margin thus grew to 27.2 percent (Q2 2006: 23.6 percent). The Group´s semiconductor segment, Siltronic, contributed the largest share to this strong earnings gain. Siltronic improved its EBITDA by EUR49.8 million year-on-year, thereby increasing its earnings by nearly 70 percent. WACKER POLYSILICON, too, significantly enhanced its EBITDA, which rose 51 percent year-on-year. WACKER POLYMERS profited from continued construction-sector strength and boosted its EBITDA by 17 percent year-on-year. However, WACKER SILICONES and WACKER FINE CHEMICALS only marginally improved their year-on-year figures. The Group´s Q2 2007 earnings before interest and tax (EBIT) surged to EUR178.2 million (Q2 2006: EUR111.8m), with net income climbing 95 percent year-on-year to EUR130.0 million (Q2 2006: EUR66.5m). Earnings per share for the period under review are EUR2.62 (Q2 2006: EUR1.35). The Munich-based company reiterated its full-year 2007 sales and earnings forecast. Based on current exchange rates, the Group continues to expect sales revenue grow of over 10 percent, accompanied by a rising year-on-year EBITDA margin.
"Strong customer demand is the prime driver of our continued dynamic growth and we are responding to this demand via strategic production-capacity expansion projects," said CEO Peter-Alexander Wacker. "Despite additional burdens from raw material and currency markets, we have significantly surpassed last year´s earnings again. This underscores our operational strength once more."
In regional terms, Asia and Europe continued to be WACKER´s most important sales markets in Q2 2007. Central and eastern Europe, as well as China, showed particularly strong development. WACKER´s Q2 sales in Asia grew 46 percent to EUR328.7 million (Q2 2006: EUR225.5m). In the period under review, Europe (excluding Germany) contributed EUR271.5 million (Q2 2006: EUR248.5m) to Group sales - a year-on-year increase of 9 percent. The Americas and Germany were virtually equal with Q2 2007 sales of EUR160.9 million (Q2 2006: EUR165.7m) and EUR168.4 million (Q2 2006: EUR163.8m), respectively. In the Americas, dollar-related negative currency effects and the generally slower rate of economic growth had an impact. Accordingly, prior-year results were not quite reached there. In contrast, Germany achieved year-on-year sales growth of 3 percent. In the rest of the world, the Group posted April-to-June sales of EUR29.5 million (Q2 2006: EUR26.9m) - beating the prior-year figure by 10 percent.
The Group´s Q2 2007 net cash flow reached EUR122.1 million (Q2 2006: EUR15.0m). Thus, net cash flow (i.e. the difference between cash inflow from operating activities and outflow due to investment activities) rose by a factor of eight compared to the prior-year period. The chief factors fueling this jump were robust business performance and, particularly, additional prepayments from customers for future polysilicon shipments.
In Q2 2007, investments in intangible assets, property, plant, equipment, and financial assets amounted to EUR180.7 million (Q2 2006: EUR96.1m) - an 88 percent increase over Q2 2006. The Group focused investment on creating and expanding production capacities at its divisions. In Zhangjiagang (China), a WACKER SILICONES production complex for pyrogenic silica (HDK®) is under construction, and the division is expanding its downstream silicone facilities there, too. WACKER POLYMERS is building a new dryer for dispersible polymer powders in Burghausen (Germany). At the same location, WACKER POLYSILICON´s Poly 6 and Poly 7 expansion phases will boost polysilicon capacity. Siltronic is increasing 300 mm wafer capacity at Burghausen and constructing a new 300 mm wafer line in Singapore.
WACKER had 14,892 employees worldwide on June 30, 2007, slightly more than in the previous quarter (March 31, 2007: 14,788). 11,513 were employed in Germany (March 31, 2007: 11,447) and 3,379 at non-domestic sites (March 31, 2007: 3,341).
Business Divisions WACKER SILICONES reported total Q2 2007 sales of EUR353.6 million, beating the prior-year period by some 8 percent (Q2 2006: EUR327.3m). Growth was chiefly driven by stronger sales volumes. The price increases achieved in certain sectors also had a positive effect. Currency shifts, though, weighed on sales and earnings. April-to-June EBITDA rose 1 percent from the year-ago period to EUR68.0 million (Q2 2006: EUR67.0m). Although the division saw methanol´s market price drop slightly in Q2, raw-material costs were generally above last year´s level, especially in the case of silicon metal.
WACKER POLYMERS continued to enjoy the construction sector´s global buoyancy during the quarter under review. Sales totaled to EUR167.7 million (Q2 2006: EUR147.4m) - a year-on-year increase of about 14 percent. Dispersible polymer powders were the main growth driver, with production capacity gains boosting sales volumes. The division increased its EBITDA to EUR34.5 million in Q2 2007, a rise of some 17 percent (Q2 2006: EUR29.4m). Strong earnings were mainly fueled by volume growth and higher revenues for dispersible polymer powders. The division had increased its prices for these powders at the beginning of 2007. On the negative side, earnings were impacted by currency shifts and higher raw-material costs.
In Q2 2007, WACKER FINE CHEMICALS posted total sales of EUR27.6 million, matching the prior-year level (Q2 2006: EUR28.0m). For standard products and customized fine chemicals, sales declined. But the drop was virtually offset by vibrant demand for bioengineered cysteine. At EUR3.8 million, the division´s April-to-June EBITDA was above the year-earlier quarter (Q2 2006: EUR3.1m). The improvement reflects the positive impact of current restructuring measures for customized fine chemicals.
At WACKER POLYSILICON, total Q2 sales rose 26 percent to EUR97.9 million (Q2 2006: EUR77.9m). Mainly due to higher prices, the increase also stemmed from volume gains enabled by the Poly 4 polysilicon production plant (commissioned in late 2006). April-to-June EBITDA climbed 51 percent year on year, reaching EUR34.8 million (Q2 2006: EUR23.0m). The earnings surge was boosted by higher polysilicon prices and sales volumes.
Siltronic generated total Q2 2007 sales of EUR370.9 million (Q2 2006: EUR300.3m) - almost 24 percent above the year-earlier quarter. Key factors here were substantial volume gains, especially in the 300 mm wafer segment, and higher average prices for all wafer diameters. These effects more than compensated for negative currency shifts. Siltronic´s April-to-June EBITDA soared to EUR122.8 million (Q2 2006: EUR73.0m). Fueled primarily by volume and price improvements, earnings were over 68 percent up on the year-ago period.
Outlook In view of the global economy´s current prospects and the Group´s own appraisal of demand trends, WACKER sees business remaining robust over the coming six months. WACKER does not, however, expect second-half results to match the first half-year´s, due to several scheduled plant shutdowns and declining demand for 200 mm wafers. Based on current exchange rates, the Group continues to expect full-year sales revenue growth of over 10 percent, accompanied by a rising year-on-year EBITDA margin.
Information for editorial offices: the full Q2 2007 report can be downloaded from WACKER´s website (www.wacker.com) under Investor Relations.
Key Group Figures
|EUR million |Q2 2007 |Q2 2006 |% |H1 2007 |H1 2006|% | | | | |change | | |change| | | | | | | | | |Sales |959.0 |830.4 |15 |1,902.7 |1,628.9|17 | |EBITDA1 |260.8 |195.7 |33 |526.3 |379.3 |39 | |EBITDA margin2 |27.2% |23.6% |15 |27.7% |23.3% |19 | |EBIT3 |178.2 |111.8 |59 |366.1 |217.5 |68 | |EBIT margin2 |18.6% |13.5% |38 |19.2% |13.4% |44 | | | | | | | | | |Financial result |-6.2 |-17.9 |-65 |-11.6 |-28.9 |-60 | |Income before taxes |172.0 |93.9 |83 |354.5 |188.6 |88 | |Net income |130.0 |66.5 |95 |244.5 |132.7 |84 | | | | | | | | | |Earnings per share in |2.62 |1.35 |94 |4.92 |2.84 |73 | |EUR | | | | | | | | | | | | | | | |Investments (incl. |180.7 |96.1 |88 |271.7 |172.4 |58 | |financial assets) | | | | | | | | | | | | | | | |Net cash flow |122.1 |15.0 |>100 |346.3 |37.7 |>100 | | | | | |
|EUR million | June 30,| June 30, | Dec. 31,| | |2007 |2006 |2006 | | | | | | |Equity |1,695.2 |1,409.3 |1,585.8 | | | | | | |Financial liabilities |291.0 |546.9 |409.9 | | | | | | |Provisions for |362.5 |358.6 |354.8 | |pensions | | | | | | | | | |Net financial debt |144.3 |514.3 |367.0 | | | | | | |Total assets |3,588.3 |3,078.8 |3,258.2 | | | | | | |Employees (number at |14,892 |14,555 |14,668 | |end of 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 result, limited partnership interests and income tax.
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 02.08.2007 07:29:27 --------------------------------------------------------------------------------
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: CDAX, Classic All Share, HDAX, MDAX, Midcap Market Index, Prime All Share Börsen: Börse Frankfurt / official dealing/prime standard
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