EANS-News: WACKER Remains on Growth Course After a Record Year in 2010

- Strong start in Q1 2011 with higher sales volumes and revenues
-
Consolidated sales of over €5 billion expected for full-year 2011
-
EBITDA for 2011 should reach prior-year level despite significantly
higher raw-material costs and polysilicon-expansion ramp-up costs
-
Following record figures in 2010, WACKER intends to raise dividend to
€3.20

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Financial Figures/Balance Sheet

Subtitle: - Strong start in Q1 2011 with higher sales volumes and
revenues - Consolidated sales of over €5 billion expected for
full-year 2011 - EBITDA for 2011 should reach prior-year level
despite significantly higher raw-material costs and
polysilicon-expansion ramp-up costs - Following record figures in
2010, WACKER intends to raise dividend to €3.20

Munich (euro adhoc) - March 16, 2011 - Wacker Chemie AG expects
further sales-revenue and sales-volume gains for 2011. As the Munich
chemical company announced today, the upward trend at WACKER´s
business segments continued in Q1 2011. Thanks to strong customer
demand across all sectors and regions, the company ended 2010 with
new sales and earnings records. Consolidated sales rose 28 percent to
EUR4.75 billion (2009: EUR3.72 billion). Earnings before interest,
taxes, depreciation and amortization (EBITDA) nearly doubled to
EUR1.19 billion (2009: EUR607 million). Net income increased to
EUR497 million last year. In 2009, WACKER had posted a loss of
EUR74.5 million, due to a number factors, including provisions and
fixed-asset impairments.

In the first two months of 2011, every division reported high and
sustained sales volumes. Consolidated sales in January and February
2011 were clearly up year on year. Should this trend continue
throughout the year, WACKER anticipates that 2011´s consolidated
sales will cross the EUR5 billion mark. According to current plans,
EBITDA is expected to reach the high level of 2010 despite
significantly rising raw-material costs and ramp costs for
polysilicon capacity expansion.

"We have entered 2011 with confidence and from a position of
strength," said CEO Rudolf Staudigl on Wednesday in Munich. "The
Group is in excellent financial shape and our long-term investment
strategy has established a solid basis in the world´s growth regions
over the last few years - above all in Asia. Customer demand for our
products remains strong at all divisions. This means 2011 is going to
be another very successful year for WACKER."

Capital Expenditures The Group´s investments stayed at a high level
in 2010. Asset additions reached EUR695 million (2009: EUR740
million). Funds were primarily earmarked for hyperpure polysilicon
capacity expansion and for additional plants to manufacture silicones
in China.

At Burghausen, WACKER started up its polysilicon "Expansion Stage 8,"
reaching the planned nominal capacity of 10,000 metric tons per year
in Q2 2010. Construction of polysilicon facilities at Nünchritz -
also with a capacity of 10,000 metric tons per year - progressed very
well in 2010. Currently, the buildings are being fitted with
production equipment. Commissioning is scheduled to commence before
the end of this year.

In November 2010, WACKER and its partner Dow Corning officially
launched siloxane production in Zhangjiagang, China. This production
complex rounds out the world´s largest integrated site for silicones.
The launch not only marks the completion of WACKER´s key investment
project in the dynamic Chinese market, but it also prepares the
ground for continued silicone business expansion there.

WACKER took an important step toward securing its raw-material base
by purchasing a silicon-metal plant in Holla, Norway, last year. The
Munich-based chemical company acquired this site from the FESIL Group
for EUR66.5 million in mid-2010. Holla´s production capacity totals
around 50,000 metric tons of silicon metal per year. As a result,
WACKER now covers almost a third of its annual silicon-metal needs
through captive production.

Employees As per year-end 2010, WACKER had 16,314 employees worldwide
(2009: 15,618) - up 696 year over year. The rise is due to strong
customer demand and high capacity-utilization rates. Another factor
enlarging the workforce was its acquisition of the Holla
silicon-metal plant and of a silicone site at Jincheon, South Korea.
At year-end, WACKER´s German sites had 12,235 employees (2009:
11,925) and its international sites 4,079 (2009: 3,693).

Net Cash Flow, Net Financial Liabilities and Equity Ratio In 2010,
net cash flow grew to EUR422 million (2009: EUR-33 million). This
increase is the result of strong operational business and high
prepayments from customers for future polysilicon deliveries. In
terms of net financial liabilities (the balance of liquidity and
financial liabilities), WACKER posted a surplus of EUR264 million as
per December 31, 2010. A year earlier, the Group had net financial
liabilities of EUR76 million. As per year-end 2010, WACKER´s total
assets were significantly higher at EUR5.5 billion (2009: EUR4.54
billion) than a year ago. This 21-percent rise was caused by asset
additions, by higher inventories and trade receivables stemming from
stronger business volumes, and by exchange-rate effects. On the
balance-sheet date, equity amounted to EUR2.45 billion (2009: EUR1.94
billion), resulting in an equity ratio of 44.5 percent (2009: 42.8
percent).

Business Divisions Last year, Siltronic posted a strong increase in
total sales, which climbed 61 percent to EUR1.02 billion (2009:
EUR637.5 million). This was the result of strong demand for
electronic products and equipment from industry and consumers. Demand
for silicon wafers was significantly higher year over year for all
diameters. Higher volumes and prices, lower specific production costs
and favorable exchange-rate effects contributed to markedly improved
EBITDA of EUR88 million (2009: EUR-162 million).

WACKER SILICONES ended 2010 with a new sales record, posting total
sales of EUR1.58 billion (2009: EUR1.24 billion), up 28 percent. This
gain was fueled by strong demand across every sector. Demand even
remained at a high level during the usually somewhat weaker summer
months. At EUR230 million (2009: EUR158 million), EBITDA grew even
more than sales, up 46 percent compared to a year earlier. WACKER
SILICONES´ EBITDA benefited particularly from higher volumes, low
specific production costs, and favorable exchange-rate effects.
Higher prices for raw materials, such as methanol and platinum,
slowed earnings growth. Moreover, Q4 saw a negative impact on EBITDA
due to a provision totaling EUR52 million for expected losses from
the Group´s silicone business in China. The provision is related to
higher transfer prices for siloxane from WACKER´s joint venture with
Dow Corning.

WACKER POLYMERS´ total sales also rose last year - primarily thanks
to higher sales volumes for dispersions and dispersible polymer
powders. Up 9 percent, sales reached EUR810 million (2009: EUR744
million). EBITDA increased 5 percent to EUR123 million (2009: EUR117
million). Greater sales volumes and higher prices for the division´s
products did not fully compensate for far higher ethylene costs (a
key raw material), thereby slowing the upward EBITDA trend.

In 2010, WACKER BIOSOLUTIONS increased total sales by 36 percent to
EUR142 million (2009: EUR105 million). This growth was driven by
strong demand in all product segments and by the first-time inclusion
of gumbase operations over an entire fiscal year. In 2009, the
division´s sales figures had only included this business during the
second half of the year. EBITDA grew even more than sales, soaring
152 percent to EUR25 million (2009: EUR10 million). Initial full
consolidation of gumbase business also benefited EBITDA throughout
2010.

WACKER POLYSILICON grew substantially again in 2010 - with total
sales climbing 22 percent to EUR1.37 billion (2009: EUR1.12 billion).
The increase was fueled by strong and sustained customer demand for
hyperpure polysilicon from the solar and semiconductor industries and
by new production volumes from Burghausen´s "Expansion Stage 8."
Moreover, the division was able to boost productivity, enabling its
existing facilities to generate additional quantities. Total
production capacity rose from an annual 18,100 metric tons to 30,500
year over year. EBITDA grew even more strongly than sales, climbing
41 percent to EUR733 million (2009: EUR521 million). The healthy
earnings trend was due to a decline in specific production costs
relative to the higher quantities.

Proposal on Appropriation of Profits In accordance with German
Commercial Code accounting rules, Wacker Chemie AG posted a retained
profit of EUR775.3 million in 2010. Due to the company´s good
earnings and financial situation, the Executive and Supervisory
Boards will propose a dividend of EUR3.20 (2009: EUR1.20) per share
at the Annual Shareholders´ Meeting. Based on the number of shares
entitled to participate in dividends as per December 31, 2010, the
cash dividend corresponds to a payout of EUR159 million. This
represents about one third of net income.

Outlook According to economic experts, the global upturn will
continue during the current year. Growth rates are, however, expected
to be lower than in 2010. Momentum will be strongest in Asia. The
large economies of China and India will grow particularly strongly.
Moreover, GDP in every other region is expected to be above
prior-year levels.

The robust recovery is leading to rising raw-material costs. In
January and February 2011, the prices for WACKER´s key raw materials
- silicon, ethylene and methanol - significantly exceeded the
prior-year average. The company anticipates further raw-material
price increases in the coming months. Compensating for these price
rises will be one of the main challenges this year.

WACKER will bring new production capacity on stream and make
additional investments to meet rising customer demand. In total, the
company plans to invest around EUR950 million during the current year
- with its polysilicon business as the main focus here.

In the second half of the year, WACKER POLYSILICON will start up
production at its "Expansion Stage 9" facility in Nünchritz. The
facility has a nominal capacity of 10,000 metric tons per year. Also
this year, construction will start on polysilicon production
facilities at the new Cleveland site in the US State of Tennessee.
The production complex will have an annual capacity of 15,000 metric
tons and is to be completed by the end of 2013. The investment volume
for this large-scale project will total some EUR1.1 billion.
Furthermore, WACKER is expanding its polysilicon production in
Burghausen and Nünchritz by implementing debottlenecking measures
within its integrated production network. As a result, annual volumes
will increase at each site by 5,000 metric tons, with the first
additional quantities becoming available in 2012. This expansion,
which involves investments totaling some EUR130 million, will
increase WACKER´s total hyperpure-polysilicon capacity from over
30,000 metric tons annually now to 67,000 by 2014.

WACKER also expects further growth at its chemical divisions during
2011. Its silicone and polymer businesses will benefit strongly from
accelerating demand in emerging economies, thereby generating higher
sales this year. Greater prosperity in countries like Brazil, China
and India, coupled with increasing urbanization and infrastructure
developments are fueling sales volumes for silicones, dispersible
polymer powders and dispersions. WACKER BIOSOLUTIONS is also
anticipating higher sales this year. Key growth drivers here include
its gumbase business. WACKER is a global market leader in this
segment.

For its semiconductor business, the Group expects silicon-wafer
demand to rise during 2011 - especially in the 300 millimeter
segment. New devices, such as tablet PCs and smartphones, and the
growth of image and video applications are fueling demand for memory
chips and high-performance processors. At Siltronic, this trend
should raise plant-utilization levels and, possibly, push up
silicon-wafer prices, too. For 2011, WACKER expects that Siltronic
will be able to post higher sales and earnings. To meet market growth
in Asia, further expansion of 300 mm wafer capacity at the Siltronic
Samsung Wafer joint venture in Singapore is planned.

Overall, WACKER anticipates that sales will cross the EUR5 billion
mark in 2011 for the first time ever, with every business division
contri¬buting to this success. Higher raw-material prices and
polysilicon-production start-up costs at Nünchritz will have an
effect the earnings trend. Nevertheless, WACKER expects that EBITDA
will reach 2010´s high level once again.

Please find WACKER's Key Figures under: http://www.wacker.com/cms/en/
investor-relations/berichte/reports2010/results2010/results2010.jsp

This press release contains forward-looking statements based on
assumptions and estimates of WACKER´s Executive Board. Although we
assume the expectations in these forwardlooking 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
forwardlooking statements, nor does it assume the obligation to do
so.

end of announcement euro adhoc
--------------------------------------------------------------------------------

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: Frankfurt / regulated dealing/prime standard