DGAP-News: Wacker Chemie AG: WACKER HAS A STEADY START TO THE NEW FISCAL YEAR IN Q1 2013 AMID CONTINUED PRICE PRESSURE
(firmenpresse) - DGAP-News: Wacker Chemie AG / Key word(s): Quarter Results
Wacker Chemie AG: WACKER HAS A STEADY START TO THE NEW FISCAL YEAR IN
Q1 2013 AMID CONTINUED PRICE PRESSURE
30.04.2013 / 07:14
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- GROUP SALES FOR Q1 2013 COME IN AT EUR1.08 BILLION, 6 PERCENT ABOVE Q4
2012 AND 10 PERCENT BELOW THE PRIOR-YEAR PERIOD
- FIRST-QUARTER EBITDA REACHES EUR165 MILLION, 23 PERCENT HIGHER THAN IN
THE PRECEDING QUARTER, BUT 23 PERCENT DOWN ON A YEAR AGO DUE TO PRICE
DECLINES
- NET INCOME FOR Q1 2013 AMOUNTS TO EUR5 MILLION
- CHEMICAL-BUSINESS SALES ALMOST AT THE PRIOR-YEAR LEVEL, EBITDA 5
PERCENT HIGHER THAN A YEAR EARLIER
- POLYSILICON BUSINESS POSTS MARKEDLY LOWER SALES AND EARNINGS
- FULL-YEAR 2013 FORECAST UNCHANGED: GROUP SALES EXPECTED AT LAST YEAR'S
LEVEL, EBITDA ANTICIPATED TO DECLINE YEAR ON YEAR DUE TO LOWER PRICES
FOR POLYSILICON AND SEMICONDUCTOR WAFERS
Munich, April 30, 2013 - After last year's weak fourth quarter, Wacker
Chemie AG is experiencing noticeably higher customer demand. WACKER posted
higher volumes in Q1 2013, especially in polysilicon, but in many chemical
products as well. Sales and earnings were both markedly higher than in Q4
2012. As already expected, however, the Munich-based chemical company did
not match the prior-year quarter's figures. WACKER posted sales of
EUR1,076.3 million between January and March 2013 - down about 10 percent
from a year ago (EUR1,194.3 million). The low price levels for solar
silicon and semiconductor wafers were the principal reason why sales did
not reach the Q1 2012 figure. Compared with the previous quarter
(EUR1,017.2 million), however, sales were up 6 percent.
In the quarter under review, earnings before interest, taxes, depreciation
and amortization (EBITDA) amounted to EUR164.5 million, down almost 23
percent from a year ago (EUR213.3 million), but up 23 percent on Q4 2012
(EUR133.9 million). The EBITDA margin for the quarter came in at 15.3
percent, compared with 17.9 percent in Q1 2012 and 13.2 percent in Q4 2012.
The Group's earnings before interest and taxes (EBIT) amounted to EUR32.2
million in the first quarter of 2013 (Q1 2012: EUR83.9 million), thereby
yielding an EBIT margin of 3.0 percent (Q1 2012: 7.0 percent). Net income
for the quarter under review was EUR5.1 million (Q1 2012: EUR41.8 million)
and earnings per share amounted to EUR0.08 (Q1 2012: EUR0.87).
WACKER's earnings trend from January through March was once again shaped by
the low price level for polysilicon. Solar-silicon prices in the first
three months of 2013 were substantially below their prior-year levels. For
silicon wafers, average prices were 7 percent below Q1 2012. In contrast,
the three chemical divisions' combined EBITDA was up over 5 percent year on
year. Positive factors here included higher volumes for silicone products
and dispersible polymer powders.
First-quarter EBITDA included EUR32.2 million (Q1 2012: EUR36.6 million) in
retained advance payments and damages for terminated contracts with
polysilicon customers. Savings in material and personnel expenses also
improved the quarter's EBITDA.
For full-year 2013, WACKER's forecast remains unchanged. The company
expects to generate total sales at the prior-year level (EUR4.63 billion).
EBITDA for fiscal 2013 is projected to fall short of the previous year's
figure (EUR787 million).
'In view of the general situation, WACKER got off to a satisfactory start
in 2013,' said CEO Rudolf Staudigl on Tuesday in Munich. 'Solar-silicon
prices remain a major challenge. Business continues to develop positively
at our chemical divisions. Amid stable revenues, they achieved a higher
overall margin than a year ago. While 2013 on the whole will not be an easy
year for WACKER, we are well positioned -even in a difficult business
environment - with a product portfolio covering almost every key industrial
sector.'
Regions
Asia remained by far the most important market for WACKER's products in Q1
2013. The Group generated first-quarter sales of EUR434.7 million in the
region, down nearly 11 percent from a year ago (EUR487.1 million). WACKER
generated higher sales of chemical products in the quarter under review,
yet this could not compensate for the slump in polysilicon and
semiconductor-wafer prices. Compared with Q4 2012 (EUR404.1 million),
though, WACKER increased its Asian sales by almost 8 percent.
In Europe, first-quarter sales totaled EUR256.7 million for the region -
down 7 percent from a year ago (EUR276.3 million), but up 7 percent on the
preceding quarter (EUR240.0 million). Polysilicon and semiconductor wafers
performed below the levels of both Q1 and Q4 2012, mainly due to negative
price trends. In contrast, the chemical divisions maintained the sales
levels of last year's first and fourth quarters, even though the prolonged
winter strongly held back demand in the construction sector.
WACKER generated sales of EUR159.9 million in Germany (Q1 2012: EUR184.6
million) - a year-on-year decline of more than 13 percent. Here, too, the
main reasons were solar-sector consolidation, lower wafer prices and the
long winter. Thanks to higher silicone-product sales, WACKER surpassed its
Q4 2012 figure (EUR156.2 million) by over 2 percent.
In the Americas, sales of EUR183.7 million were around 11 percent lower
than a year ago (EUR207.3 million). Most of this decline stemmed from lower
semiconductor-wafer sales. WACKER did, however, marginally improve on its
Q4 2012 figure (EUR182.6 million).
In the markets combined under 'Other Regions,' first-quarter sales totaled
EUR41.3 million - up almost 6 percent on the prior-year period (EUR39.0
million), and around 21 percent on Q4 2012 (EUR34.2 million). Overall,
WACKER generated some 85 percent of its first-quarter sales with customers
outside Germany (Q1 2012: 84 percent).
Investments and Net Cash Flow
WACKER's capital expenditures amounted to EUR121.2 million in Q1 2013 -
down some 35 percent from a year ago (EUR186.1 million) due to
project-related factors.
About 60 percent of investment spending went on constructing the new
Charleston polysilicon site in the US state of Tennessee. Additional funds
went toward the expansion of production capacities for dispersions in Asia
and the USA. In early February, WACKER officially started up a new
production facility for vinyl acetate-ethylene copolymer dispersions, with
an annual capacity of 40,000 metric tons, at the Ulsan (South Korea) site.
A new dispersions reactor at Nanjing (China) with an annual output of
60,000 metric tons officially came on stream in April. Also at Nanjing, a
new plant is being built to produce polyvinyl acetate solid resins. With an
annual capacity of 20,000 metric tons, the new plant is expected to be
completed toward the end of this year. Similarly, the US polymer site at
Calvert City is also expanding, adding 30,000 metric tons of dispersion
capacity per year. WACKER intends to benefit from growing customer demand
for high-quality dispersions in the long term.
WACKER's net cash flow in the first quarter of 2013 was EUR-39.0 million,
over EUR9 million better than a year ago (EUR-48.1 million). Compared with
the fourth quarter of 2012 (EUR-241.3 million), net cash flow showed a
substantial improvement. It rose around EUR200 million on the preceding
quarter, mainly due to a significant increase in cash from operating
activities and lower capital expenditures.
Employees
On March 31, 2013, WACKER had 16,248 employees worldwide (Dec. 31, 2012:
16,292). Employee numbers therefore remained virtually unchanged relative
to year-end 2012. As of March 31, 2013, WACKER had 12,587 employees in
Germany (Dec. 31, 2012: 12,635) and 3,661 at its international sites (Dec.
31, 2012: 3,657).
Business Divisions
In Q1 2013, WACKER SILICONES achieved total sales of EUR402.1 million,
matching the level of Q1 2012 (EUR401.0 million). Compared with Q4 2012
(EUR392.0 million), the division increased its sales by just under 3
percent. Amid satisfactory customer demand, the volume of products sold in
the first quarter was higher than a year earlier. WACKER SILICONES posted
an increase in its EBITDA compared with both Q1 2012 and last year's fourth
quarter. EBITDA for the quarter came in at EUR53.7 million (Q1 2012:
EUR49.4 million)- a 9-percent increase from a year ago. Against Q4 2012
(EUR22.6 million), EBITDA more than doubled. Earnings were supported by
higher volumes, as well as by savings in material and personnel costs. The
first-quarter EBITDA margin reached 13.4 percent, compared with 12.3
percent in Q1 2012 and 5.8 percent in the preceding quarter.
WACKER POLYMERS generated total sales of EUR226.7 million from January
through March 2013 (Q1 2012: EUR233.8 million). Although this was down 3
percent from a year ago, it marked an improvement of more than 3 percent
compared with Q4 2012 (EUR219.2 million). Sales performance was held back
by relatively weak construction-sector demand due to the long winter in
Europe. First-quarter EBITDA was EUR35.7 million (Q1 2012: EUR34.1
million), up just under 5 percent from a year ago. Higher volumes for
dispersible polymer powders, as well as reduced material and personnel
costs, were factors contributing to the positive earnings trend. EBITDA
more than doubled against Q4 2012 (EUR17.5 million). From January through
March 2013, the EBITDA margin was 15.7 percent (Q1 2012: 14.6 percent). In
the preceding quarter, the margin had been 8.0 percent.
WACKER BIOSOLUTIONS achieved total first-quarter sales of EUR40.5 million
(Q1 2012: EUR41.2 million). The result was only slightly down on the
prior-year figure, but well above Q4 2012's sales (EUR36.2 million).
Compared with last year, sales grew in products for pharmaceuticals and
agricultural applications. Sales for all product lines were higher than in
last year's fourth quarter. In the first three months of 2013, the
division's EBITDA decreased year over year by EUR1.0 million to EUR6.9
million (Q1 2012: EUR7.9 million). Compared with Q4 2012 (EUR4.0 million),
EBITDA rose by EUR2.9 million.
In a market environment shaped by the ongoing challenges of excess capacity
and consolidation throughout the solar industry, WACKER POLYSILICON
generated total sales of EUR235.4 million in the first quarter of 2013 (Q1
2012: EUR366.6 million) - a decrease of just under 36 percent. The decline
was mainly due to solar-silicon prices, which were much lower than a year
ago. Compared with the preceding quarter (EUR213.3 million), WACKER
POLYSILICON's sales increased by just over 10 percent. The increase was
essentially fueled by markedly higher volumes. Due to the substantial drop
in solar-silicon prices, the division's EBITDA decreased by 65 percent year
over year, to EUR52.5 million (Q1 2012: EUR150.1 million). In Q4 2012,
WACKER POLYSILICON had posted EBITDA of EUR78.2 million. First-quarter
EBITDA included EUR32.2 million (Q1 2012: EUR36.6 million) in retained
advance payments and damages for terminated contracts with polysilicon
customers. In last year's fourth quarter, these items had amounted to
EUR56.7 million. EBITDA in Q1 2013 also benefited from savings in material
and personnel costs. Conversely, earnings were reduced by the
plant-utilization rates, which still were low during the first half of the
quarter. The EBITDA margin showed a corresponding trend, down from 40.9
percent (Q1 2012) and 36.7 percent (Q4 2012) to 22.3 percent in the first
quarter of 2013.
At Siltronic, weak semiconductor-wafer demand and persistent price pressure
held back sales in the period from January through March 2013. The division
reported total sales of EUR171.2 million for the first three months, down
almost 15 percent from the same quarter last year (EUR201.1 million) and
just over 7 percent lower than Q4 2012 (EUR184.7 million). Overall, volumes
were marginally below the levels of a year ago and of the preceding
quarter. Although silicon-wafer prices were much lower than a year ago,
Siltronic's first-quarter EBITDA remained just above the break-even point.
Significant production-cost improvements on last year more than compensated
for the price decline. EBITDA in Q1 2013 also benefited from savings in
material and personnel costs. Conversely, exchange-rate effects stemming
from both a weaker US dollar and yen slowed earnings. Siltronic generated
total EBITDA of EUR0.7 million in the first quarter (Q1 2012: EUR-25.7
million). A year ago, EBITDA had included non-recurring expenses of EUR14.8
million in connection with the closure of the 150 mm wafer line at the
Portland site. In Q4 2012, Siltronic generated EBITDA of EUR3.5 million.
The EBITDA margin moved from -12.8 percent in Q1 2012 and 1.9 percent in Q4
2012 to 0.4 percent in the first quarter of 2013.
Outlook
After a hesitant start to 2013, the world economy will resume its gradual
upturn during the rest of the year, although downside risks still exist.
In 2013, three factors will continue to shape WACKER's strategy: expansion
into emerging markets and regions, innovations, and the substitution of
existing market offerings with WACKER products. Additionally, the Group
will be placing special emphasis this year on resource management.
Essentially, this means pursuing investment policies that are cash flow
oriented. WACKER aims to increase competition in procurement and when
expanding its global supplier base. The Group is reducing both its material
and personnel expenses and implementing a conservative hiring policy.
Productivity is to be enhanced through selective measures, especially at
WACKER POLYSILICON and Siltronic.
Capital expenditure will be below EUR600 million in full-year 2013. It is
unlikely that this amount will be completely covered by the cash flow
expected from operating activities. Depreciation will reach about EUR550
million this year. Net financial liabilities will continue to rise during
the year. Net cash flow will remain negative, but a considerable
year-on-year improvement is expected.
The main assumptions underlying WACKER's plans relate to raw-material and
energy costs, to personnel expenses and to exchange rates. For 2013, WACKER
has established a base exchange rate of US$1.35 and¥120 to the euro.
WACKER estimates that volumes will rise at every division in 2013. Planning
continues to assume lower silicon-wafer prices. In polysilicon planning,
prices are set at Q4 2012 levels.
On this basis, the Executive Board continues to anticipate that the Group's
2013 sales will reach the prior-year level. This forecast assumes that no
tariffs will be imposed between key trading partners and that semiconductor
demand will pick up in the second half of 2013. The economic uncertainties
mean the actual performance of the WACKER Group and its divisions could
depart from these assumptions, either positively or negatively. From
today's perspective, the chemical divisions will generate sales growth.
Conversely, sales will decline year on year at WACKER POLYSILICON and
Siltronic.
As already forecast in the 2012 Annual Report, Group EBITDA for 2013 is
expected to remain below the prior-year level, primarily due to lower
year-on-year prices for polysilicon and for semiconductor wafers. At the
chemical divisions, EBITDA is projected to rise further compared with 2012.
Expectations for WACKER POLYSILICON point toward a substantial EBITDA
contribution. Based on the polysilicon prices assumed for planning, though,
the division's earnings will not reach last year's figure. At Siltronic,
today's perspective does not offer any signs of a major EBITDA improvement
on the year-earlier period.
In WACKER's planning, Group net income continues to be slightly positive
amid a year-on-year increase in depreciation and a higher negative
financial result.
Note to editors: The Q1 2013 report is available for download on the WACKER
website (www.wacker.com) under Investor Relations.
Change1?EBITDA is EBIT before depreciation and amortization.
WACKER's Key Figures Q1 2013 Q1 2012* in %
Sales EUR 1,076.3 1,194.3 -9.9
million
EBITDA1 EUR 164.5 213.3 -22.9
million
EBITDA margin2) % 15.3 17.9 -
EBIT3 EUR 32.2 83.9 -61.6
million
EBIT margin2 % 3.0 7.0 -
Financial result EUR -14.6 -13.2 10.6
million
Income before taxes EUR 17.6 70.7 -75.1
million
Net income for the period EUR 5.1 41.8 -87.8
million
Earnings per share EUR 0.08 0.87 -90.5
Investments (incl. financial assets) EUR 121.2 186.1 -34.9
million
Net cash flow4 EUR -39.0 -48.1 -18.9
million
March 31, March 31, Dec. 31,
2013 2012* 2012
Equity EUR 2,188.4 2,337.0 2,121.3
million
Financial liabilities EUR 1,193.7 1,097.3 1,197.2
million
Net financial liabilities /net EUR -800.1 19.1 -700.5
financial receivables5 million
Total assets EUR 6,433.6 6,677.2 6,492.8
million
Employees (number at end of period) 16,248 17,166 16,292
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 received) and cash flow from noncurrent investment activities
(before securities), including additions due to finance leases.
5 Sum of cash and cash equivalents, noncurrent and current securities, and
noncurrent and current financial liabilities.
* Adjusted for the effects of the adoption of IAS 19 (revised), see Changes
in Accounting and Valuation Methods in the Notes section of the Q1 2013
interim report.
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.
For further information, please contact:
Wacker Chemie AG
Media Relations&Information
Christof Bachmair
Tel.: +49 89 6279-1830
Fax: +49 89 6279-1239
christof.bachmair(at)wacker.com
End of Corporate News
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Language: English
Company: Wacker Chemie AG
Hanns-Seidel-Platz 4
81737 München
Germany
Phone: 0049-89-6279-1633
Fax: 0049-89-6279-2933
E-mail: investor.relations(at)wacker.com
Internet: www.wacker.com
ISIN: DE000WCH8881
WKN: WCH888
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
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