EANS-News: WACKER Posts Very Good Third Quarter Figures and Expects 2011 EBITDA at Last Year´s Level

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Financial Figures/Balance Sheet

Subtitle: - WACKER Group sales up one percent to €1.28 billion in Q3
2011 - Earnings before interest, taxes, depreciation and amortization
down seven percent from a strong Q3 2010, at €318 million - Net
income for Q3 2011 reaches €125 million - Investments of €299 million
up almost 40 percent compared to Q3 2010 - focus on polysilicon
expansion - More cautious full-yerar forecast: 2011 Group sales
expected to reach about €5 billion, with EBITDA at prior-year level

Munich (euro adhoc) - October 28, 2011 - Wacker Chemie AG increased
its third-quarter sales slightly compared with a year ago. At the
Munich-based chemical group, sales reached EUR1.28 billion from July
through September 2011, climbing one percent (Q3 2010: EUR1.27
billion). The rise stemmed mainly from higher sales volumes, driven
by good customer demand. Additional positive effects came from
successful price increases in some areas, such as dispersions and
dispersible polymer powders. In contrast, sales were held back by
exchange-rate effects resulting primarily from the weaker US dollar.

WACKER´s earnings performance did not match the strong prior-year
level. In Q3 2011, earnings before interest, taxes, depreciation and
amortization (EBITDA) fell 7 percent year-on-year to EUR317.6 million
(Q3 2010: EUR340.0 million). The third-quarter EBITDA margin was 24.8
percent, down from 26.8 percent in Q3 2010. Earnings before interest
and taxes (EBIT) declined 16 percent to EUR197.2 million (Q3 2010:
EUR234.3 million). The EBIT margin for the July-through-September
quarter was 15.4 percent (Q3 2010: 18.5 percent). Net income for the
period came in at EUR124.9 million (Q3 2010: EUR155.8 million). As a
result, earnings per share reached EUR2.50 (Q3 2010: EUR3.13).

The main reason why earnings were down against Q3 2010 was the higher
price level for key raw materials and starting materials. Ethylene,
for example, was nearly 20 percent more expensive in Q3 2011 than a
year ago. Silicon metal prices increased almost 30 percent. Vinyl
acetate monomer, a key starting material in the manufacture of
dispersions and dispersible polymer powders, went up by more than 30
percent compared with Q3 2010. In addition, start-up costs for
commissioning the new polysilicon production facility at Nünchritz
(Germany) reduced third-quarter EBITDA.

For Q4 2011, WACKER estimates that a weaker global economy and the
resultant decline in momentum will slow demand for its products and
affect customer ordering patterns. In the semiconductor sector,
leading market experts have revised downward their growth projections
for the coming months. As a result, WACKER expects Siltronic´s
fourth-quarter sales volumes to be lower than anticipated at
mid-year. In its solar business, price and consolidation pressures
are intensifying on the photovoltaic market due to high customer
inventories. Consequently, WACKER POLYSILICON´s sales revenues and
margins will be lower in Q4 2011 than in the quarter under review.
Amid these developments, WACKER may not quite achieve the sales and
earnings figures forecast earlier. WACKER now expects to generate
sales of about EUR5 billion in 2011. According to its current
estimates, Group EBITDA will be at last year´s level (EUR1.19
billion).

"Despite the tougher economic climate, business was good in the third
quarter," said CEO Rudolf Staudigl in Munich on Friday. "Given the
economic uncertainties, our customers are being more cautious with
their orders, while prices for our key raw materials remain very
high. The demand for our products, however, is as strong as ever in
many areas. Even if the fourth quarter turns out to be weaker than
originally anticipated, 2011 will be comparable to last year´s record
results."

Regions In Q3 2011, WACKER posted slight year-on-year sales increases
in all regions - apart from Europe excluding Germany. Asia once again
provided the largest share of consolidated sales from July through
September 2011. The Group generated some 38 percent of its total
third-quarter sales in this region (Q3 2010: 37 percent). At EUR484.7
million, Asian sales climbed 4 percent (Q3 2010: EUR466.6 million).
The quarter also saw further business growth in Germany, where WACKER
achieved sales of EUR237.6 million (Q3 2010: 228.9 million), up some
4 percent year on year. In the rest of Europe, however, sales slipped
7 percent to EUR298.7 million (Q3 2010: EUR319.8 million). In the
Americas, the WACKER Group posted third-quarter sales of EUR219.9
million (Q3 2010: EUR218.2 million) - an increase of one percent,
even though the US dollar was considerably weaker than during the
comparable quarter last year. In the other regions, sales totaled
EUR39.7 million (Q3 2010: EUR36.0 million). Overall, WACKER generated
about 81 percent of its third-quarter sales with customers outside
Germany (Q3 2010: 82 percent).

Investments and Net Cash Flow In Q3 2011, WACKER invested a total of
EUR299.1 million (Q3 2010: EUR215.5 million), almost 40 percent more
than a year ago. Capital expenditures in Q3 2011 continued to focus
on the expansion and construction of new hyperpure-polysilicon
production facilities. More than half of the Group´s third-quarter
investments were for this segment. The scheduled ramp-up of
polysilicon facilities at Nünchritz (Germany) is progressing well. Q3
2011 saw the first deposition reactors coming on stream and the first
quantities produced for sale. Full nominal capacity of 15,000 metric
tons per year is expected in the second quarter of 2012. In the US
state of Tennessee, construction of the new Charleston polysilicon
facility continues at full swing.

WACKER´s net cash flow from July through September 2011 amounted to
EUR34.5 million (Q3 2010: EUR192.4 million). Third-quarter cash flow
reflected the continued high level of investments in
polysilicon-capacity expansion and a decline in advance payments
received. Cash inflow from operating activities totaled EUR296.9
million, over 30 percent less than a year ago (Q3 2010: EUR441.3
million). This decrease was due, among other things, to higher
inventories and to lower year-on-year net income.

Employees With production capacity and sales structures continuing to
expand, WACKER´s workforce has grown. As of September 30, 2011,
WACKER had 17,133 employees worldwide (June 30, 2011: 16,834).
Employee numbers were 2 percent higher than on June 30, 2011. On
September 30, 2011, WACKER had 12,778 employees in Germany (June 30,
2011: 12,572) and 4,355 at its international sites (June 30, 2011:
4,262).

Business Divisions In the third quarter of 2011, WACKER SILICONES
reported total sales of EUR405.2 million, almost 4 percent less than
a year ago (Q3 2010: EUR421.3 million). The weak US dollar was a
major factor in sales not quite matching the prior-year figure.
Additionally, slightly lower prices left their mark on some market
segments. Customer demand edged down slightly in the third quarter.
Silicones for the energy, electronic and medical sectors put in a
good market performance, as did pyrogenic silica for coatings and
adhesives. However, customers ordered more cautiously and at shorter
notice in the third quarter than during the first half of 2011. As a
result, the book-to-bill ratio decreased. In Q3 2011, WACKER
SILICONES was only able to partly counter the strong year-on-year
rise in raw-material costs by increasing its prices. Consequently,
EBITDA declined by just over 33 percent to EUR52.0 million (Q3 2010:
EUR77.9 million). The corresponding EBITDA margin was 12.8 percent
(Q3 2010: 18.5 percent).

Due to robust demand for dispersions and dispersible polymer powders,
total third-quarter sales at WACKER POLYMERS climbed by 14 percent to
EUR257.9 million (Q3 2010: EUR225.8 million). Business benefited from
a strong increase in sales volumes and higher product prices. The
division´s third-quarter EBITDA amounted to EUR39.2 million, about
one percent below Q3 2010 (EUR39.7 million). Profitability was held
back by significantly higher prices for ethylene and vinyl acetate
monomer. The July-through-September EBITDA margin was 15.2 percent
(Q3 2010: 17.6 percent).

WACKER BIOSOLUTIONS achieved total sales of EUR34.1 million in Q3
2011, down about 8 percent from Q3 2010 (EUR37.0 million). The main
reason for the year-on-year decline was low capacity utilization at
several production facilities, in line with business levels. The
specialty silanes business for pharmaceutical applications made good
progress during the quarter under review. In contrast, demand for
acetylacetone and gumbase slackened. Due to the underutilization of
several plants, WACKER BIOSOLUTIONS´ third-quarter EBITDA of EUR3.1
million was well below the prior-year figure (EUR5.5 million). The
division´s third-quarter EBITDA margin fell correspondingly to 9.1
percent (Q3 2010: 14.9 percent).

At WACKER POLYSILICON, higher production and sales volumes increased
total third-quarter sales to EUR378.2 million - up 8 percent against
Q3 2010 (EUR349.5 million). Despite extreme overcapacity and initial
consolidation in the downstream value-added stages of the solar
industry (wafers, cells, modules), demand for the division´s
high-quality polysilicon remained very strong in the period under
review. In particular, the volumes supplied to customers in Asia
under multiyear contracts rose substantially. Spot market prices
remained largely stable from July to mid-September 2011, following a
marked downturn in the first half-year. WACKER POLYSILICON generated
third-quarter EBITDA of EUR179.4 million, down 6 percent from Q3 2010
(EUR189.9 million). The decline mainly stems from start-up costs for
the expansion of production capacity at Nünchritz. The third-quarter
EBITDA margin was 47.4 percent (Q3 2010: 54.3 percent).

Siltronic posted total sales of EUR255.3 million from July through
September 2011, a drop of 9 percent (Q3 2010: EUR280.4 million).
Third-quarter business was influenced by weaker sales volumes, which
were some 5 percent lower than a year ago, and by the unfavorable
strength of the euro against the US dollar. Customer orders edged
down in the period under review. Japan´s semiconductor manufacturers
managed to get their plants up and running again faster than had at
first been expected following the March 2011 earthquake. As a result,
the supply situation on world markets has returned to normal. The
positive demand and price effects that benefited Siltronic in the
first half of 2011 thus no longer apply. Production capacity
utilization at Siltronic declined during the quarter, in line with
the ordering patterns of its customers. At the end of the quarter,
Siltronic´s plants were generally operating at around two-thirds of
capacity. Siltronic´s EBITDA, though, improved in the third quarter
to EUR33.6 million, rising 6 percent (Q3 2010: EUR31.6 million). The
EBITDA margin for the July-through-September quarter was 13.2 percent
(Q3 2010: 11.3 percent).

Outlook In the first three quarters of 2011, WACKER kept its sales
performance high, and enhanced it in some divisions. Weaker business
trends and the resultant decline in momentum, though, are slowing
demand for the Group´s products and affecting customer ordering
patterns. As a result, it is difficult to predict exactly how
business will develop during the remaining months of fiscal 2011.

For the fourth quarter, the Group anticipates substantially lower
sales volumes and revenues, especially in its semiconductor business,
coupled with declining plant utilization. This will have an
appreciable impact on Siltronic´s earnings in Q4 2011. In the Group´s
polysilicon business, fourth-quarter sales revenues and margins will
fall short of the preceding quarter´s figures as customers tighten
their inventories. In silicones, the Group anticipates that some
segments are likely to see a decline in incoming orders.
Additionally, the Group´s chemical divisions will experience the
normal seasonal effects of their business with, for example, the
construction sector. Seasonality will hold back sales volumes and
revenues, though no more than usual.

Due mainly to the trends expected in its semiconductor and
polysilicon business during Q4 2011, WACKER may not quite achieve the
sales and earnings figures previously forecast for full-year 2011.
WACKER now expects to generate sales of about EUR5 billion in 2011.
According to its latest estimates, EBITDA will be at last year´s
level (EUR1.19 billion).

Note to editors: The Q3 2011 report is available for download on the
WACKER website (www.wacker.com) under Investor Relations.

Key Figures of the WACKER Group

|EUR million |Q3 2011 |Q3 2010 |Change in| |9M 2011|9M 2010|Change
|
| | | |% | | | |in % |
|Sales |1,280.6 |1,269.5 |0.9 | |3,898.1|3,538.5|10.2 |
|EBITDA1 |317.6 |340.0 |-6.6 | |993.4 |902.3 |10.1 |
|EBITDA margin2 |24.8 |26.8 |- | |25.5 |25.5 |- |
|EBIT3 |197.2 |234.3 |-15.8 | |658.2 |592.7 |11.1 |
|EBIT margin2 |15.4 |18.5 |- | |16.9 |16.8 |- |
| | | | | | | | |
|Financial result |-9.3 |-11.7 |-20.5 | |-26.9 |-24.0 |12.1 |
|Income before taxes |187.9 |222.6 |-15.6 | |631.3 |568.7 |11.0 |
|Net income for the |124.9 |155.8 |-19.8 | |435.6 |397.1 |9.8 |
|period | | | | | | | |
| | | | | | | | |
|Earnings per share (EUR) |2.50 |3.13 |-20.1 | |8.76 |7.98 |9.8
|
|(basic/diluted) | | | | | | | |
| | | | | | | | |
|Investments (incl. |299.1 |215.5 |38.8 | |644.0 |454.7 |41.6 |
|financial assets) | | | | | | | |
|Investments in |- |-66.1 |-100.0 | |- |-66.1 |-100.0 |
|acquisitions | | | | | | | |
|Net cash flow4 |34.5 |192.4 |-82.1 | |267.7 |302.5 |-11.5 |
| | | | | |
|EUR million |Sept. |Sept. |Dec. 31, | |
| |30, 2011|30, 2010|2010 | |
|Equity |2,698.9 |2,341.6 |2,446.8 | |
|Financial liabilities |593.1 |470.1 |533.4 | |
|Net financial |364.0 |152.0 |264.0 | |
|receivables/liabilities5| | | | |
|Total assets |6,125.7 |5,233.0 |5,501.2 | |
| | | | | |
|Employees (number at end|17,133 |16,184 |16,314 | |
|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 results, and income taxes
4 Sum of cash flow from operating activities and noncurrent investment
activities before securities, including 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.

Further inquiry note:
Christof Bachmair
Media Relations & Information
Tel.: +49 (0)89 6279 1830
E-Mail: christof.bachmair@wacker.com

end of announcement euro adhoc
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company: Wacker Chemie AG
Hanns-Seidel-Platz 4
D-81737 München
phone: +49 (0) 89 6279 01
FAX: +49 (0) 89 6279 1770
mail: info@wacker.com
WWW: http://www.wacker.com
sector: Chemicals
ISIN: DE000WCH8881
indexes: MDAX, CDAX, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Hamburg,
Stuttgart, Düsseldorf, Hannover, München, regulated dealing: Berlin
language: English