November 6, 2009

Munich, Germany: Wacker Reports Third Quarter 2009 Results

Wacker Chemie AG posted strong quarter-on-quarter sales and earnings growth in July through September 2009. Fueled chiefly by higher volumes, sales reached €986.5 million (Q3 2008: €1,156.9m).

Although 15 percent lower than a year ago, sales at the Munich-based chemical group were up 7 percent against Q2 2009. More favorable year-on-year exchange rates supported this growth, while lower prices hampered business performance. Despite incurring an investment loss of €51.9 million due to exiting former joint venture WACKER SCHOTT Solar, the Group reported earnings before interest, taxes, depreciation and amortization (EBITDA) of €184.0 million (Q3 2008: €327.5m), 8 percent higher than Q2 2009 (€170.1m).

In the third quarter of 2009, WACKER POLYSILICON profited from the market success of initial sales volumes generated by the ramp-up at Burghausen’s new hyperpure polycrystalline silicon facilities. Thanks to its Q3 production and sales-volume records, the division increased total sales to €268.6 million – a good 12 percent above the year-on-year figure (€238.9m), even though prices for short-term orders were lower than a year earlier.

On the earnings front, the benefits of moderate operating costs and high capacity utilization did not offset the strain on investment income due to exiting the WACKER SCHOTT Solar joint venture. The exit-related expenses and pro-rata losses totaled €51.9 million in the period under review.

This meant that Q3 EBITDA amounted to only €86.5 million (Q3 2008: €130.7m) and the EBITDA margin was 32.2 percent (Q3 2008: 54.7 percent). Without the non-recurring items due to WACKER SCHOTT Solar, WACKER POLYSILICON would have posted an EBITDA margin of 51.5 percent.

Further details about: Wacker