DGAP-News: WACKER POSTS QUARTER-ON-QUARTER SALES AND EARNINGS GROWTH
(firmenpresse) - DGAP-News: Wacker Chemie AG / Key word(s): Half Year Results
WACKER POSTS QUARTER-ON-QUARTER SALES AND EARNINGS GROWTH
30.07.2013 / 07:14
---------------------------------------------------------------------
- GROUP SALES FOR Q2 2013 COME IN AT EUR1.15 BILLION, 7 PERCENT ABOVE Q1
2013 AND 6 PERCENT BELOW THE PRIOR-YEAR PERIOD
- SECOND-QUARTER EBITDA REACHES EUR188 MILLION, 14 PERCENT HIGHER THAN IN
THE PRECEDING QUARTER, BUT 22 PERCENT DOWN FROM A YEAR AGO DUE TO PRICE
DECLINES
- NET INCOME FOR Q2 2013 AMOUNTS TO EUR15 MILLION
- SALES IN CHEMICALS 2 PERCENT ABOVE Q2 2012 AMID STRONGER SALES VOLUMES,
WITH EBITDA 4 PERCENT HIGHER THAN A YEAR AGO
- POLYSILICON BUSINESS POSTS MARKEDLY LOWER SALES AND EARNINGS YEAR ON
YEAR DUE TO LOWER PRICES
- FULL-YEAR 2013 FORECAST SPECIFIED: GROUP SALES EXPECTED TO COME IN AT
APPROXIMATELY EUR4.5 BILLION, WITH EBITDA DECLINING YEAR ON YEAR DUE TO
LOWER PRICES FOR POLYSILICON AND SEMICONDUCTOR WAFERS
Munich, July 30, 2013 - Wacker Chemie AG expanded its business in
April-through-June 2013 compared with the preceding quarter. This growth
primarily stems from increased demand at its chemical divisions. Volumes in
many business areas outperformed both Q2 2012 and Q1 2013. Products for the
construction industry experienced particularly strong demand due to
seasonal effects. Sales and earnings at the Munich-based chemical company
were higher than in Q1 2013. As already expected, though, WACKER did not
match the prior-year quarter's figures. WACKER posted sales of EUR1,150.3
million from April through June 2013, after EUR1,222.5 million last year, a
decline of just under 6 percent. The low price levels for solar silicon and
semiconductor wafers were the principal reason why sales did not reach the
Q2 2012 figure. Compared with the preceding quarter (EUR1,076.3 million),
however, sales were up roughly 7 percent.
In Q2 2013, WACKER achieved earnings before interest, taxes, depreciation
and amortization (EBITDA) of EUR188.2 million - down some 22 percent from a
year ago (EUR242.1 million), but over 14 percent above Q1 2013 (EUR164.5
million). The EBITDA margin for the second quarter was 16.4 percent, after
19.8 percent in Q2 2012 and 15.3 percent in Q1 2013. The Group's earnings
before interest and taxes (EBIT) from April to June 2013 totaled EUR52.5
million (Q2 2012: EUR111.9 million). The corresponding EBIT margin was 4.6
percent, after 9.2 percent a year ago. Net income for the quarter under
review was EUR15.1 million (Q2 2012: EUR61.1 million) and earnings per
share amounted to EUR0.27 (Q2 2012: EUR1.19).
WACKER's earnings trend from April through June was once again marked by
the low price levels for polysilicon. Solar-silicon prices in the second
quarter were down about one-third from their prior-year levels. For
semiconductor wafers, prices were roughly 10 percent lower than in Q2 2012.
On the other hand, total EBITDA at the three chemical divisions climbed to
EUR116.6 million, almost 4 percent above Q2 2012 (EUR112.3 million) and 21
percent up on Q1 2013 (EUR96.3 million). The increase was chiefly prompted
by volume growth, which, in some cases, was due to seasonal effects.
Second-quarter EBITDA included EUR23.8 million (Q2 2012: EUR19.4 million)
in retained advance payments and damages stemming from terminated contracts
with polysilicon customers.
WACKER has specified its sales forecast for full-year 2013, with Group
sales now expected to reach EUR4.5 billion, after EUR4.63 billion last
year. EBITDA for fiscal 2013 is still projected to fall short of the
previous year's figure (EUR787 million).
'In the face of a persistently difficult market and competitive
environment, WACKER closed the first half of 2013 with satisfactory
results,' said CEO Rudolf Staudigl on Tuesday in Munich. 'Our chemical
divisions performed well during the April-through-June period. In
polysilicon, low price levels and trade-policy risks remain a challenge. A
compromise has now been found in the solar dispute between the European
Union and China. If this settlement is implemented, it could mark the start
of another global photovoltaics upturn.'
Regions
Asia was once again by far the most important market for WACKER products in
the quarter under review. The Group achieved sales of EUR448.3 million in
the region between April and June 2013, down about 8 percent from a year
ago (EUR489.3 million). Demand for WACKER's chemical products, in
particular, continued to rise in the second quarter. However, higher sales
in chemicals could not compensate for polysilicon and semiconductor-wafer
price declines. Compared with Q1 2013 (EUR434.7 million), WACKER increased
its Asian sales by 3 percent.
In Europe, WACKER posted April-through-June sales of EUR289.2 million, thus
almost matching the level of a year ago (EUR292.2 million). The chemical
divisions improved their sales, but semiconductor wafers and polysilicon
fell well short of their prior-year figures, largely due to lower prices.
The generally weak economic situation dampened business in Europe year on
year. Compared with the preceding quarter (EUR256.7 million), the Group's
sales in this region rose by almost 13 percent.
In Germany, the main factor slowing sales was the solar sector's ongoing
shift to Asia. WACKER generated second-quarter sales of EUR164.7 million in
Germany, down almost 5 percent from the year-earlier period (EUR173.0
million), but up 3 percent on the preceding quarter (EUR159.9 million).
In the Americas, sales of EUR201.9 million were down 10 percent from a year
ago (EUR224.4 million). Most of this decline stemmed from substantially
weaker semiconductor-wafer sales. However, WACKER surpassed its Q1 2013
sales of EUR183.7 million by approximately 10 percent.
In the markets combined under 'Other Regions,' second-quarter sales totaled
EUR46.2 million - rising 6 percent on last year (EUR43.6 million) and 12
percent on Q1 2013 (EUR41.3 million). Overall, WACKER generated some 86
percent of its second-quarter sales with customers outside Germany (Q2
2012: 86 percent).
Investments and Net Cash Flow
In Q2 2013, WACKER invested EUR131.3 million to expand production capacity
- a good 46 percent less than a year ago (EUR244.9 million), due to
project-related factors.
Investments remained focused on constructing the new polysilicon site at
Charleston (Tennessee, USA). This project accounted for around two-thirds
of the Group's capital expenditures in the quarter under review. At the
Nanjing site in China, WACKER officially commissioned a new production
plant for vinyl acetate-ethylene copolymer (VAE) dispersions in mid-April.
With this second reactor line's additional 60,000 metric tons, WACKER has
doubled its production capacity in China for VAE dispersions to a total of
120,000 metric tons per year. Also at Nanjing, WACKER is currently building
a new plant to produce polyvinyl acetate solid resins. With an annual
capacity of 20,000 metric tons, the plant is expected to come on stream
toward the end of this year. Capital expenditures for both projects will
total some EUR40 million.
From April through June 2013, WACKER generated a clearly positive net cash
flow of EUR65.1 million (Q2 2012: EUR-156.9 million). Due primarily to a
significant increase in cash from operating activities and to lower capital
expenditures, net cash flow improved by over EUR220 million on the
prior-year level.
Employees
The Group's workforce remained practically unchanged compared with the end
of thefirst quarter. On June 30, 2013, there were 16,203 employees
worldwide at WACKER (March 31, 2013: 16,248). As of June 30, 2013, the
Group had 12,501 employees in Germany (March 31, 2013: 12,587) and 3,702 at
its international sites (March 31, 2013: 3,661).
Business Divisions
WACKER SILICONES posted total sales of EUR437.2 million in Q2 2013, up more
than 3 percent against the prior-year period (EUR422.9 million) and almost
9 percent more than in Q1 2013 (EUR402.1 million). The division expanded
its second-quarter volumes for all major product groups. WACKER SILICONES'
EBITDA amounted to EUR66.3 million in the quarter under review, almost 11
percent higher than in Q2 2012 (EUR59.9 million) and a good 23 percent
higher than in the preceding quarter (EUR53.7 million). The EBITDA margin
for 2013's second quarter was 15.2 percent, after 14.2 percent last year
and 13.4 percent in the first quarter of 2013. Volume growth and by good
fixed-cost coverage from high plant utilization were among the factors that
positively impacted the division's earnings.
WACKER POLYMERS generated total sales of EUR273.4 million from April
through June 2013 (Q2 2012: EUR276.1 million). This 1-percent decline was
primarily due to somewhat lower year-on-year prices, which were not fully
offset by the division's higher volumes. Compared with the preceding
quarter (EUR226.7 million), sales were up by almost 21 percent. Here,
WACKER POLYMERS benefited from a significant rise in demand from
construction-industry customers after the long winter in Europe.
Second-quarter EBITDA at the division amounted to EUR44.4 million, just
under 2 percent lower than in Q2 2012 (EUR45.3 million), but 24 percent
above Q1 2013 (EUR35.7 million). The significant increase in
quarter-on-quarter earnings was mainly due to higher volumes. The EBITDA
margin for April through June 2013 reached 16.2 percent (Q2 2012: 16.4
percent). In the first quarter of 2013, the EBITDA margin was 15.7 percent.
WACKER BIOSOLUTIONS reported total sales of EUR40.5 million for April
through June 2013, after EUR40.1 million a year ago. Sales were thus
roughly at last year's level and on a par with the preceding quarter
(EUR40.5 million). Products used in agricultural and medical applications
saw year-on-year growth. EBITDA at WACKER BIOSOLUTIONS decreased by EUR1.2
million to EUR5.9 million in Q2 2013, after EUR7.1 million a year earlier.
Compared with Q1 2013 (EUR6.9 million), EBITDA declined by EUR1.0 million
in the second quarter. The EBITDA margin for Q2 2013 was 14.6 percent,
after 17.7 percent last year and 17.0 percent in the preceding quarter.
In a market environment shaped by the ongoing challenges of consolidation
across the solar industry and by trade-policy risks, WACKER POLYSILICON
generated total sales of EUR203.3 million between April and June 2013 (Q2
2012: EUR286.8 million) - 29 percent less than a year earlier. This decline
was mainly caused by solar-silicon prices, which were about one-third lower
than in the same period last year. Compared with Q1 2013 (EUR235.4
million), sales decreased by almost 14 percent. The main factor here was
that the second quarter did not reach the first quarter's very high
volumes, since there were fewer orders on the books. Fears that China might
retroactively introduce punitive tariffs on polysilicon imports had
resulted in customers taking delivery of lower quantities in Q2 relative to
Q1. Prices for polysilicon remained stable, yet low, quarter on quarter.
Amid lower prices for solar silicon, second-quarter EBITDA at WACKER
POLYSILICON declined by almost 47 percent to EUR64.0 million (Q2 2012:
EUR120.3 million). EBITDA included EUR23.8 million from retained advance
payments and damages for terminated polysilicon contracts (Q2 2012: EUR19.4
million). In Q1 2013, this item had amounted to EUR32.2 million. Compared
with the first three months of 2013 (EUR52.5 million), WACKER POLYSILICON
increased its EBITDA by over 22 percent. This was partly the result of
higher plant utilization compared with the preceding quarter. The EBITDA
margin for the second quarter was 31.5 percent, after 41.9 percent in Q2
2012 and 22.3 percent in Q1 2013.
Siltronic posted total sales of EUR200.1 million in Q2 2013, after EUR247.4
million last year - down 19 percent. This decline was mainly due to lower
year-on-year prices for silicon wafers. Compared with Q1 2013 (EUR171.2
million), sales climbed by 17 percent, driven primarily by appreciably
stronger customer demand. Volumes grew substantially relative to the
preceding quarter. Although silicon-wafer prices were much lower than a
year ago, Siltronic reported positive EBITDA for the second quarter.
Earnings were supported by Siltronic's improvements to production costs,
compared with a year ago. Conversely, exchange-rate effects stemming from
both a weaker yen and US dollar slowed the earnings trend. Overall, the
division achieved EBITDA of EUR9.1 million in Q2 2013, EUR3.9 million less
than a year ago (EUR13.0 million), but EUR8.4 million more than in the
preceding quarter (EUR0.7 million). The EBITDA margin for the second
quarter of 2013 came in at 4.5 percent, compared with 5.3 percent last year
and 0.4 percent in Q1 2013.
Outlook
The world economy is expected to gain some momentum during the second half
of 2013, though the pace of regional expansion will remain very varied. The
risks to world trade and growth due to the sovereign-debt and financial
crisis in the USA and Europe are still as strong as ever.
In 2013 and the following years, three factors will shape WACKER's business
strategy: expansion into emerging markets and regions, innovations, and the
substitution of existing market offerings with WACKER products.
WACKER has made resource management a key priority for this year. With an
ambitious cost-cutting initiative in every business field, WACKER intends
to save EUR200 million this year. Alongside specific measures at Siltronic
and WACKER POLYSILICON, another key tool here is the Wacker Operating
System (WOS) - a continuous productivity improvement program in chemicals,
spanning the entire supply chain.
In 2013, WACKER intends to invest some EUR550 million. At about the same
level as annual depreciation, this amount is unlikely to be completely
covered by the cash flow expected from operating activities. Net financial
liabilities will continue to grow during the year. The target here is to
stay below the one-billion-euro mark by year-end. Although 2013's net cash
flow will remain negative, the gap will be much smaller than a year ago.
WACKER's medium-term targets through to 2017 - which were presented by the
Executive Board at Capital Markets Day in London in early July - anticipate
average sales growth of about 6 percent annually for the coming years. By
2017, sales are expected to climb to between EUR6 billion and EUR6.5
billion, with Group EBITDA increasing by some 9 percent per year during
this period to reach around EUR1.2 billion in 2017. This corresponds to an
EBITDA margin of about 20 percent. The return on capital employed (ROCE) is
projected to reach over 11 percent by that time.
In mid-2013, the Executive Board specified its estimates for full-year
sales. Based on assumptions made in the Q1 2013 report about energy and
raw-material costs, personnel expenses and exchange-rate effects, the Group
expects sales for full-year 2013 to come in at around EUR4.5 billion (2012:
EUR4.63 billion). For this to be achieved, however, it is important that
there is no escalation in the trade dispute about Chinese solar products.
This forecast is based on prices that are weaker than last year, especially
for polysilicon and semiconductor wafers. In chemicals, WACKER expects
higher full-year sales, thanks to volume growth amid lower prices. Overall,
the price declines are likely to reduce Group sales by some EUR350 million.
Group EBITDA for 2013 is expected to remain below last year's figure, as
already forecast in the 2012 Annual Report, primarily due to lower
year-on-year prices for solar silicon and semiconductor wafers. At the
chemical divisions, EBITDA is projected to edge above the prior-year
figures. WACKER POLYSILICON is planning to make a substantial contribution
to EBITDA in 2013, but its earnings will not reach the prior-year level,
based on the polysilicon prices in the division's estimates. At Siltronic,
there are currently no signs of a major EBITDA improvement on the
prior-year period.
Group net income, according to WACKER's projections, will be slightly
positive, amid a year-on-year rise in depreciation and a higher negative
financial result.
Information for editorial offices: The Q2 2013 report is available for
download on the WACKER website (www.wacker.com) under Investor Relations.
WACKER's Key Figures
Q2 Q2 Change 6M 6M Change
EUR million 2013 2012* in% 2013 2012* in%
Sales 1,150.3 1,222.5 -5.9 2,226.6 2,416.8 -7.9
EBITDA1 188.2 242.1 -22.3 352.7 455.4 -22.6
EBITDA margin2 (%) 16.4 19.8 - 15.8 18.8 -
EBIT3 52.2 111.9 -53.1 84.7 195.8 -56.7
EBIT margin2 (%) 4.6 9.2 - 3.8 8.1 -
Financial result -21.1 -14.9 41.6 -35.7 -28.1 27.0
Income before taxes 31,4 97.0 -67.6 49.0 167.7 -70.8
Net income for the period 15,1 61.1 -75.3 20.2 102.9 -80.4
Earnings per share (EUR) 0.27 1.19 -77.3 0.36 2.07 -82.6
Investments (incl. financial 131.1 244.9 -46.4 252.5 431.0 -41.4
assets)
Net cash flow4 65.1 -156.9 n.a. 26,1 -204.5 n.a.
June 30, June 30, Dec. 31,1?EBITDA is EBIT before depreciation and amortization.
EUR million 2013 2012* 2012*
Equity 2,196.0 2,214.9 2,121.3
Financial liabilities 1,468.0 1,114.0 1,197.2
Net financial liabilities5 820.0 316.0 700.5
Total assets 6,633.4 6,604.9 6,492.8
Employees (number at end of period) 16,203 16,759
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) 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 Q2 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
---------------------------------------------------------------------
30.07.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
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
End of News DGAP News-Service
---------------------------------------------------------------------
223263 30.07.2013
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 30.07.2013 - 07:14 Uhr
Sprache: Deutsch
News-ID 282742
Anzahl Zeichen: 11163
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 382 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: WACKER POSTS QUARTER-ON-QUARTER SALES AND EARNINGS GROWTH"
steht unter der journalistisch-redaktionellen Verantwortung von
Wacker Chemie AG (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
