EANS-News: Strong Quarterly Figures Give WACKER a Good Start into 2011

- WACKER increases Group sales by 21 percent to €1.29 billion in Q1
2011
- Earnings before interest, taxes, depreciation and
amortization grow by 38 percent to €351 million in the reporting
period
- Quarterly net income climbs to €168 million
- Strong
operations and high customer prepayments boost Q1 2011 net cash flow
to €286 million
- Full-year Group sales expected to surpass €5
billion in 2011, with EBITDA to exceed last year’s figure of €1.19
billion

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

quarterly report

Subtitle: - WACKER increases Group sales by 21 percent to €1.29
billion in Q1 2011 - Earnings before interest, taxes, depreciation
and amortization grow by 38 percent to €351 million in the reporting
period - Quarterly net income climbs to €168 million - Strong
operations and high customer prepayments boost Q1 2011 net cash flow
to €286 million - Full-year Group sales expected to surpass €5
billion in 2011, with EBITDA to exceed last year’s figure of €1.19
billion

Munich (euro adhoc) - May 4, 2011 - Wacker Chemie AG significantly
increased sales and earnings in Q1 2011, giving it a good start into
fiscal 2011. Sales of the Munich chemical company grew by 21 percent
to EUR1.29 billion from January through March 2011 (Q1 2010: EUR1.07
billion). This rise was primarily due to higher sales volumes.
WACKER´s business continued to grow thanks to a positive market
environment and high customer demand. Sales were additionally
supported by higher prices in some key product segments, while
changes in exchange rates had virtually no effect.

WACKER´s profitability also grew significantly, compared to both the
previous year and Q4 2010. Earnings before interest, taxes,
depreciation and amortization (EBITDA) rose to EUR351.0 million in Q1
2011 (Q1 2010: EUR253.7 million), a year-over-year increase of 38
percent. The EBITDA margin continued to grow in the first three
months of 2011 and now stands at 27.2 percent, up from 23.8 percent
in Q1 2010. Group earnings before interest and taxes (EBIT) climbed
to EUR245.9 million in the first quarter of 2011 (Q1 2010: EUR153.7
million). The EBIT margin rose to 19.0 percent (Q1 2010: 14.4
percent). Net income for the period reached EUR168.0 million (Q1
2010: EUR105.9 million), yielding earnings per share of EUR3.39 (Q1
2010: EUR2.15).

Earnings growth was primarily the result of stronger sales volumes
and revenues. This led to high plant utilization at all divisions,
which had a positive effect on specific production costs. Compared to
Q1 2010, higher polysilicon volumes were available from Burghausen´s
Poly 8 expansion stage, which had reached its full nominal capacity
in Q2 2010. WACKER´s profitability was additionally supported by the
higher prices for some of its products during the first three months
of 2011. Higher raw-material costs only had a partial impact on
earnings in Q1, since the Group was, in some cases, still using raw
materials procured in 2010.

WACKER expects sales and earnings growth for full-year 2011. The
Munich chemical company anticipates consolidated sales of over EUR5
billion. 2011 EBITDA is expected to surpass last year´s figure of
EUR1.19 billion.

"WACKER continues its upward trend past the first three months of
2011," said Group CEO Rudolf Staudigl in Munich on Wednesday. "Rising
prices for raw materials and start-up costs for our new polysilicon
production in Nünchritz will slow down our earnings growth. But on
the other hand, customer demand remains high at all divisions and our
semiconductor business has seen incoming orders rise sharply in the
last few weeks. We therefore expect high plant utilization. 2011 will
be another very good year for WACKER."

Regions The WACKER Group posted robust double-digit growth figures
for all regions worldwide during the first quarter of 2011. Asia once
again reinforced its position as WACKER´s largest market. Sales there
rose by 29 percent to EUR471.9 million from January through March
2011 (Q1 2010: EUR364.8 million). Approximately 58 percent of this
were generated in China, including Taiwan. WACKER also achieved
substantial sales growth in Germany and the rest of Europe. In
Germany, sales rose to EUR247.2 million, up 13 percent on last year
(Q1 2010: EUR219.1 million). In the other European countries,
WACKER´s business grew some 19 percent, with sales climbing to
EUR311.9 million (Q1 2010: 261.8 million). In the Americas, WACKER
increased its first-quarter sales by 19 percent as well, to EUR220.5
million (Q1 2010: EUR185.8 million). Here, too, the expansion was
chiefly driven by strong customer demand. Changes in exchange rates
had virtually no effect. In the other regions, first-quarter sales
grew by 13 percent to EUR40.2 million (Q1 2010: EUR35.5 million).
Overall, WACKER generated 81 percent of its first-quarter sales with
customers outside Germany.

Investments and Net Cash Flow In Q1 2011, WACKER invested EUR136.6
million in property, plant and equipment, and in financial assets (Q1
2010: EUR98.3 million). More than half of the investment total went
to WACKER POLYSILICON. Capital expenditures at the division amounted
to EUR78.2 million and focused on the ongoing construction of a
polysilicon plant at Nünchritz (Germany). Nünchritz is expected to
start producing polysilicon before the end of this year. At its
Charleston, Tennessee (USA) location, WACKER POLYSILICON has already
started constructing a fully-integrated polysilicon site. To meet
increasing customer demand for polysilicon, WACKER is also expanding
its existing facilities at Burghausen and Nünchritz. The two sites´
combined capacity will increase by a total of 10,000 metric tons per
year. Initial volumes from these expansion measures are expected to
be available as early as 2012.

Despite high investments, the WACKER Group´s net cash flow increased
more than fivefold to EUR286.3 million in the first quarter of 2011
(Q1 2010: EUR54.6 million). The rise was primarily due to two
factors. First, WACKER´s operational business remained strong in Q1,
resulting in high gross cash flow. Cash inflow from operating
activities climbed by EUR290.5 million to EUR450.0 million (Q1 2010:
EUR159.5 million). Second, this figure included EUR229.6 million (Q1
2010: EUR6.0 million) in cash inflows from customer prepayments for
future polysilicon deliveries. Overall, WACKER increased its balance
of prepayments received by EUR187.1 million to around 1.22 billion in
the reporting period.

Employees As of March 31, 2011, WACKER had 16,602 employees worldwide
(Dec. 31, 2010: 16,314). The payroll increase primarily stems from
higher staffing needs due to the dynamic business trend and high
plant-utilization rates. On March 31, 2011, WACKER had 12,414
employees in Germany (Dec. 31, 2010: 12,235) and 4,188 at its
international sites (Dec. 31, 2010: 4,079).

Business Divisions In Q1 2011, WACKER SILICONES generated total sales
of EUR410.5 million - a rise of 12 percent against the prior-year
quarter (Q1 2010: EUR367.0 million). Sales were bolstered by
additional volumes from new Chinese silicone-polymer and
silicone-fluid production plants that came on stream in Q4 2010.
Customer demand remained robust in most business segments throughout
the period under review. Particularly strong growth was achieved by
organofunctional silanes for the formulation of construction foams
and by pyrogenic silica for adhesives. From January through March
2011, WACKER SILICONES posted EBITDA of EUR75.1 million (Q1 2010:
EUR62.1 million). This 21-percent increase on the prior-year quarter
yielded an EBITDA margin of 18.3 percent (Q1 2010: 16.9 percent).

WACKER POLYMERS´ total Q1 2011 sales came in at EUR205.4 million,
over 20 percent higher than a year ago (Q1 2010: EUR170.8 million).
Sales growth was mainly due to rising demand for dispersible polymer
powders and dispersions. In Q1 2011, EBITDA at WACKER POLYMERS
reached EUR26.0 million, rising more than 29 percent year over year
(Q1 2010: EUR20.1 million). As a result, the EBITDA margin reached
12.7 percent (Q1 2010: 11.8 percent). Earnings were held back by
ethylene prices being much higher than a year ago. Ethylene cost
almost 27 percent more than in Q1 2010. To compensate for rising
raw-material costs, WACKER POLYMERS increased its product prices.

Due to healthy demand, WACKER BIOSOLUTIONS´ total sales climbed by
almost 10 percent to EUR37.7 million (Q1 2010: EUR34.4 million). In
the first quarter of 2011, demand was especially strong for products
used in pharmaceutical and agrochemical applications. WACKER
BIOSOLUTIONS generated first-quarter EBITDA of EUR5.2 million (Q1
2010: EUR4.8 million). Earnings benefited from stronger sales
volumes, especially for gumbase and acetylacetone. However, because
sales rose slightly more steeply than earnings, the EBITDA margin
edged down to 13.8 percent from 14.0 percent a year ago.

At WACKER POLYSILICON, sales volumes and revenues, as well as
earnings all remained at a very high level in Q1 2011. Sales climbed
to EUR414.4 million, rising 28 percent on Q1 2010 (EUR323.9 million).
Q1 2011 saw WACKER POLYSILICON increasing its output by around 30
per¬cent year over year, in large part due to the new Poly 8
facility, which reached its full nominal capacity in Q2 2010.
Technological improvements led to further volume gains. All the
division´s plants are operating at full capacity. Customers continued
to show a strong interest in new multiyear contracts involving
advance payments. At the end of the quarter, virtually the entire
output planned up until the end of 2015 had been sold. WACKER
POLYSILICON´s first-quarter EBITDA came in at EUR214.7 million (Q1
2010: EUR157.7 million), a rise of more than 36 percent. The
first-quarter EBITDA margin reached 51.8 percent this year (Q1 2010:
48.6 percent).

In Q1 2011, Siltronic continued its positive sales and earnings
performance. Total first-quarter sales came in at EUR280.2 million
(Q1 2010: EUR219.1 million), climbing around 28 percent. Customer
demand grew particularly strongly for 300 mm wafers, with sales
volumes up about 20 percent on the comparable prior-year figure. In
Q1 2011, the utilization rate averaged just under 80 percent. Since
mid-March, there has been a sharp upturn in customer orders following
the earthquake in Japan. To help customers handle these exceptional
circumstances, Siltronic is currently ramping up production at all
its plants. Siltronic posted further earnings gains in Q1 2011,
generating EBITDA of EUR36.8 million (Q1 2010: EUR1.2 million). The
first-quarter EBITDA margin was 13.1 percent, up from 0.5 percent in
Q1 2010. Earnings were lifted by increased plant utilization and by
higher average prices in the period under review compared with a year
ago.

Outlook The upturn in the global economy is continuing in spring
2011. The economies of emerging markets, in particular, are once
again very dynamic, following a slight slowdown in growth during last
year´s second half. Advanced economies also saw output and trade pick
up appreciably in Q1 2011. Given the current economic trends, WACKER
expects customer demand and sales to remain strong and stable at all
its divisions. Group sales in subsequent quarters of 2011 are
estimated to be higher than the corresponding prior-year levels.

As 2011 progresses, two major factors will affect WACKER´s earnings
performance: the upward trend in raw-material prices and the start-up
costs for the Group´s Nünchritz polysilicon plant. Compared to Q1
2011, both factors are likely to acquire a higher profile in
subsequent quarters and diminish WACKER´s profitability. In contrast,
Siltronic´s very healthy order levels promise higher plant
utilization and correspondingly low specific production costs.
Overall, WACKER sees a very good chance of crossing the EUR5 billion
sales mark in full-year 2011. Currently, the company anticipates that
EBITDA will surpass 2010´s figure of EUR1.19 billion.

Note to editors: The Q1 2011 report is available for download on the
WACKER website (www.wacker.com) under Investor Relations.

WACKER´s Key Figures
|EUR million |Q1 2011 |Q1 2010 |Change |
| | | |in % |
|Sales |1,291.7 |1,067.0 |21.1 |
|EBITDA1 |351.0 |253.7 |38.4 |
|EBITDA margin2 (%) |27.2 |23.8 |14.3 |
|EBIT3 |245.9 |153.7 |60.0 |
|EBIT margin2 (%) |19.0 |14.4 |32.2 |
| | | | |
|Financial result |-7.9 |-3.3 |>100 |
|Income before taxes |238.0 |150.4 |58.2 |
|Net income for the period |168.0 |105.9 |58.6 |
| | | | |
|Earnings per share (EUR) |3.39 |2.15 |57.9 |
| | | | |
|Investments (incl. |136.6 |98.3 |39.0 |
|financial assets) | | | |
|Net cash flow4 |286.3 |54.6 |>100 |
| | | | |
|EUR million |March 31, |March |December |
| |2011 |31, 2010|31, 2010 |
|Equity |2,617.9 |2,073.2 |2,446.8 |
|Financial liabilities |541.9 |502.6 |533.4 |
|Net financial |559.5 |-31.5 |264.0 |
|receivables/liabilities5 | | | |
|Total assets |5,932.9 |4,796.5 |5,501.2 |
| | | | |
|Employees (number at end of|16,602 |15,733 |16,314 |
|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 4 Sum of cash
flow from operating activities and noncurrent investment activities
before securities, incl. additions from finance leases 5 Sum of cash
and cash equivalents, noncurrent and current securities, and
noncurrent and current financial liabilities

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
--------------------------------------------------------------------------------

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