DGAP-News: WACKER CHEMIE AG

DGAP-News: Wacker Chemie AG / Key word(s): Preliminary Results
Wacker Chemie AG: WACKER HITS NEW SALES HIGH, LIFTS EBITDA AND BOOSTS CASH FLOW IN 2016

01.02.2017 / 07:14
The issuer is solely responsible for the content of this announcement.

• SALES GROW 2 PERCENT ON HIGHER VOLUMES TO REACH EUR5.4 BILLION IN FULL-YEAR 2016
• EBITDA OF EUR1.10 BILLION UP AROUND 5 PERCENT YEAR OVER YEAR DESPITE SIGNIFICANT DROP IN SPECIAL INCOME
• Q4 2016 SALES SOME 10 PERCENT HIGHER THAN A YEAR EARLIER AT EUR1.35 BILLION, WITH FINAL-QUARTER EBITDA UP 44 PERCENT TO EUR270 MILLION
• EBIT FOR 2016 REACHES EUR365 MILLION, DECLINING 23 PERCENT VERSUS LAST YEAR AMID HIGHER DEPRECIATION
• NET INCOME FOR 2016 TOTALS TO AROUND EUR190 MILLION
• NET CASH FLOW ADVANCES TO ABOUT EUR400 MILLION IN 2016

Munich, February 1, 2017 - After a good fourth quarter, Wacker Chemie AG achieved its sales target for full-year 2016 and exceeded its earnings expectations. According to preliminary calculations, the Munich-based chemical group generated total sales of EUR5.4 billion during the reporting year (2015: EUR5.3 billion). That was about 2 percent above the 2015 figure. The increase was primarily attributable to higher volumes. Every division generated year-over-year sales growth in 2016.

According to preliminary figures, Group EBITDA (earnings before interest, taxes, depreciation and amortization) came in at EUR1.10 billion (2015: EUR1.05 billion). It was 5 percent above the prior-year level despite substantially lower special income from advance payments retained and damages received from solar-sector customers. These special-income items amounted to some EUR20 million (2015: EUR138 million). Adjusted for this effect, EBITDA increased by 19 percent in the reporting year. The Group's EBIT (earnings before interest and taxes) came in at EUR365 million in 2016 (2015: EUR473 million). This year-over-year decline of 23 percent reflects the substantial increase in depreciation. In 2016, depreciation amounted to some EUR735 million (2015: EUR575 million). WACKER posted preliminary net income of some EUR190 million (2015: EUR242 million).

"Our chemical business performed well in the fourth quarter, and we also saw good volume growth in semiconductor wafers and polysilicon," said Group CEO Rudolf Staudigl on Wednesday in Munich. "Thanks to good customer demand, sales were substantially higher in all segments than a year ago. On balance, we generated the strongest final-quarter sales to date."

Investments, Net Cash Flow and Net Financial Debt
WACKER's capital expenditures amounted to EUR430 million in 2016 (2015: EUR834 million) according to preliminary figures - down by almost one-half versus last year, as expected. Capital spending focused on expanding capacities for downstream silicone products, on modernizing Siltronic's crystal-pulling facilities and on completing the polysilicon plant in Charleston, Tennessee (USA). WACKER finished commissioning the production facilities there on schedule in the third quarter of 2016.

The Group's net cash flow was clearly positive, as forecast, and amounted to around EUR400 million (2015: EUR23 million). This strong rise was mainly due to the substantial decline in capital expenditures. Net financial debt was slightly below the year-earlier level, as expected. It amounted to around EUR990 million at December 31, 2016 (Dec. 31, 2015: EUR1.07 billion).

Business Performance in Q4 2016
WACKER closed the fourth quarter of 2016 with substantial gains in sales and EBITDA. Group sales from October through December 2016 totaled roughly EUR1.35 billion (Q4 2015: EUR1.23 billion), up 10 percent. EBITDA reached EUR270 million in Q4 2016 (Q4 2015: EUR 188 million). That was 44 percent more than the year-earlier figure.

WACKER's business in the final quarter was mainly spurred by lively customer demand. Sales were above the comparative Q4 2015 figures at every division.

WACKER's three chemical divisions substantially increased their total sales between October and December 2016. This sales growth stemmed primarily from higher volumes for silicones. Final-quarter sales at WACKER SILICONES, came in at EUR490 million (Q4 2015: EUR 460 million), some 7 percent above the prior-year figure. WACKER POLYMERS posted total sales of EUR275 million in Q4 2016 (Q4 2015: EUR273 million), up slightly by about 1 percent. Sales at WACKER BIOSOLUTIONS climbed 11 percent to EUR50 million (Q4 2015: EUR45 million).

EBITDA at the chemical divisions grew even more strongly than sales. The EBITDA increase was achieved through higher sales combined with low cost levels, stemming partly from high plant utilization levels, especially for silicones. In addition, ongoing efficiency programs had a positive impact on EBITDA at the chemical divisions. WACKER SILICONES posted EBITDA of EUR80 million in the final quarter of 2016 (Q4 2015: EUR50 million), a rise of 60 percent. WACKER POLYMERS lifted its EBITDA by 10 percent to EUR45 million (Q4 2015: EUR41 million). WACKER BIOSOLUTIONS reported EBITDA of about EUR7 million in Q4 2016 (Q4 2015: EUR7 million).

From October through December 2016, WACKER POLYSILICON achieved total sales of EUR295 million (Q4 2015: EUR242 million). This rise of 22 percent was due to volume growth. The division's EBITDA grew by 20 percent versus a year earlier. It reached EUR85 million in Q4 2016 (Q4 2015: EUR71 million), and included special-income items of around EUR13 million (Q4 2015: EUR28 million).

Siltronic generated total sales of EUR246 million between October and December 2016 (Q4 2015: EUR215 million). This rise of 14 percent was attributable above all to higher volumes. Favorable exchange-rate effects also contributed to sales growth. Siltronic more than doubled its EBITDA to EUR50 million in Q4 2016 (Q4 2015: EUR23 million). In addition to higher sales, good cost trends and a year-over-year reduction in currency hedging losses had a positive effect on fourth-quarter EBITDA.
 

WACKER's Preliminary Key Figures

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 (excluding changes in advance payments) and cash flow from long-term investing activities (before securities), including changes arising from finance leases.

The Q4 2016 and fiscal 2016 figures and forecasts in this press release are preliminary. Wacker Chemie AG will publish its Q4 Report and Annual Report 2016 on March 14, 2017.

For further information, please contact:
Wacker Chemie AG
Media Relations & Information
Christof Bachmair
Phone: +49 89 6279-1830
christof.bachmair@wacker.com

01.02.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de