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Wacker Chemie AG — Earnings Release 2013
Feb 6, 2014
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Earnings Release
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Corporate | 6 February 2014 07:14
Wacker Chemie AG: AFTER SOLID FOURTH QUARTER, WACKER CLOSES FISCAL YEAR 2013
Wacker Chemie AG / Key word(s): Preliminary Results
06.02.2014 / 07:14
– SALES FOR Q4 2013 REACH EUR1.09 BILLION, SOME 7 PERCENT HIGHER THAN YEAR-EARLIER PERIOD, WITH EBITDA UP 18 PERCENT TO EUR158 MILLION
– FULL-YEAR 2013 SALES COME IN AT EUR4.48 BILLION, ABOUT 3 PERCENT LOWER THAN IN PREVIOUS YEAR DUE TO SOFTER PRICING
– EBITDA OF EUR679 MILLION ALMOST 15 PERCENT BELOW PRIOR-YEAR FIGURE
– FULL-YEAR EBIT AMOUNTS TO EUR114 MILLION, WITH NET INCOME AT EUR6 MILLION
– NET CASH FLOW FOR 2013 INCREASES TO EUR110 MILLION AMID LOWER INVESTMENTS
– YEAR-END NET FINANCIAL DEBT OF EUR792 MILLION CLEARLY BELOW RECENT EXPECTATIONS
Munich, February 6, 2014 – Wacker Chemie AG posted higher sales and earnings in Q4 2013 than in the comparable year-earlier period. As expected, though, full-year sales and earnings were below 2012’s results. According to its preliminary calculations, the Munich-based chemical group generated total sales of EUR4.48 billion in 2013 (2012: EUR4.63 billion), some 3 percent down on 2012. The decline was chiefly prompted by lower prices for polysilicon and semiconductor wafers. All in all, price effects reduced Group sales by some EUR370 million or 8 percent in 2013. The chemical divisions, though, counterbalanced the price pressures with higher volumes, keeping their total sales steady at the prior-year level.
Based on preliminary figures, Group earnings before interest, taxes, depreciation and amortization (EBITDA) came in at around EUR679 million (2012: EUR795 million). This is close to 15 percent less than in the previous year. The preliminary calculation for earnings before interest and taxes (EBIT) is EUR114 million for 2013 (2012: EUR267 million). WACKER’s 2013 net income amounts to EUR6 million (2012: EUR115 million).
Persistently low solar-silicon prices were the chief factor weighing on earnings. Although more or less stable from the start of 2013, annual solar-silicon prices were about a third lower on average than in 2012. Exchange-rate effects and the strong euro also played a role. WACKER’s chemical divisions, though, increased their EBITDA by over 11 percent compared to the previous year, thanks mainly to higher volumes.
‘The figures for 2013 are in line with our expectations and forecasts,’ said CEO Rudolf Staudigl in Munich on Thursday. ‘We are pleased that our final-quarter sales and earnings were better than in 2012. In polysilicon, volumes picked up strongly, even though prices have not improved noticeably in the fourth quarter. In chemicals, demand was very healthy despite the usual slowdown during the winter months. Overall, our fourth-quarter performance offers a good basis for starting the new fiscal year.’
Investments, Net Cash Flow and Net Financial Debt
According to preliminary figures, WACKER’s investments amounted to EUR504 million in 2013 (2012: EUR1.1 billion), just under half the level of a year earlier due to project-related factors. Depreciation for 2013 totaled EUR564 million (2012: EUR529 million). Most capital expenditures went toward the ongoing construction of the new polysilicon site in Charleston, Tennessee (USA). Other investments flowed into expanding production capacity for polymer products and polyvinyl acetate solid resins in China and South Korea.
The Group’s significantly lower capital expenditures were a key positive factor for net cash flow, which improved noticeably. In full-year 2013, it reached EUR110 million (2012: EUR-536 million). At the same time, the Group’s net financial debt grew much less than expected in early 2013. It amounted to EUR792 million as of December 31, 2013 (Dec. 31, 2012: EUR701 million).
‘Now that we have largely completed, or extended the timeline for, our capital-intensive large-scale investments in new upstream facilities, we want to reap the benefits of these efforts in the years ahead,’ said CFO Joachim Rauhut. ‘Last year, our investments were over 50 percent lower than in 2012 and we expect them to remain below the level of depreciation in the coming years. This will have a positive impact on our cash flow.’
Business Performance in Q4 2013
WACKER closed Q4 2013 with solid results despite the usual seasonal effects. Thanks to strong customer demand and stable polysilicon prices, the Group’s fourth-quarter sales rose about 7 percent year on year to EUR1.09 billion (Q4 2012: EUR 1.02 billion). EBITDA saw even stronger growth. It climbed to EUR 158 million in Q4 2013 (Q4 2012: EUR134 million), a rise of 18 percent compared with the year-earlier period.
Overall, the chemical divisions grew sales moderately and earnings strongly from October through December 2013. Their total fourth-quarter sales came in at EUR656 million (Q4 2012: EUR647 million). This gain of over 1 percent chiefly stemmed from higher year-on-year volumes. EBITDA in the chemical divisions almost doubled relative to the final quarter of 2012, increasing to some EUR79 million in Q4 2013 (Q4 2012: EUR44 million). Plant utilization was high, especially for silicones, amid solid demand. As a result, the Group’s chemical divisions more than compensated for lower prices and negative exchange-rate effects arising from the stronger euro. The reversal of provisions built up in the past for contingent losses from siloxane production in China had a positive impact of EUR14 million on chemical-division EBITDA.
Siltronic generated total October-through-December sales of around EUR175 million (Q4 2012: EUR185 million) amid a persistently challenging market environment. This is close to 6 percent less than in the year-earlier period. Conversely, Siltronic improved EBITDA despite ongoing price pressure. Its Q4 2013 EBITDA reached EUR11 million (Q4 2012: EUR4 million).
WACKER POLYSILICON generated substantial year-on-year sales growth in Q4 2013 thanks to a strong rise in volumes amid steady prices. The division’s sales totaled EUR250 million from October through December 2013 (Q4 2012: EUR213 million), up 17 percent. In the same period, EBITDA fell more than 9 percent to EUR71 million (Q4 2012: EUR78 million). The earnings decline mainly stems from differences in retained advance payments and damages relating to terminated polysilicon contracts. WACKER POLYSILICON posted around EUR8 million here in the final quarter of 2013. Its EBITDA of Q4 2012 had included about EUR55 million resulting from retained advance payments and damages received.
WACKER’s Preliminary Key Figures
| EUR million | 2013e | 2012* | Change in % |
| Sales | 4,479 | 4,635 | -3.3 |
| EBITDA 1 | 679 | 795 | -14.6 |
| EBITDA margin 2 (%) | 15 | 17 | – |
| EBIT 3 | 114 | 267 | -57.3 |
| EBIT margin 2 (%) | 3 | 6 | – |
| Net income for the period | 6 | 115 | -94.8 |
| Capital expenditures (including financial assets) | 504 | 1,095 | -54.0 |
| Net cash flow 4 | 110 | -536 | n.a. |
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 noncurrent investment activities (before securities), including additions due to finance leases.
* Adjusted for the effects of the adoption of IAS 19 (revised).
The Q4 and fiscal 2013 figures and forecasts in this press release are preliminary. Wacker Chemie AG will publish its Q4 Report and Annual Report 2013 on March 18, 2014.
For further information, please contact:
Wacker Chemie AG
Media Relations & Information
Christof Bachmair
Tel.: +49 89 6279-1830
Fax: +49 89 6279-1239
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: | [email protected] |
| 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 |
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