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Wacker Chemie AG: WACKER POSTS SIGNIFICANT GROWTH IN SALES AND EARNINGS FOR Q2 2015

DGAP-News: Wacker Chemie AG / Key word(s): Quarter Results
Wacker Chemie AG: WACKER POSTS SIGNIFICANT GROWTH IN SALES AND
EARNINGS FOR Q2 2015

03.08.2015 / 07:14

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- GROUP SALES FOR Q2 2015 REACH EUR1.37 BILLION, UP 10 PERCENT YEAR OVER
YEAR AND ALMOST 3 PERCENT QUARTER OVER QUARTER

- HIGHER VOLUMES AND FAVORABLE EXCHANGE RATES DRIVE SALES TREND

- SECOND-QUARTER EBITDA REACHES EUR329 MILLION, WITH NON-RECURRING
EFFECTS CONTRIBUTING TO THE INCREASE OF 43 PERCENT ON A YEAR AGO

- NET INCOME FOR Q2 2015 AMOUNTS TO EUR108 MILLION

- FORECAST CONFIRMED: GROUP SALES FOR FULL-YEAR 2015 EXPECTED TO INCREASE
BY ABOUT 10 PERCENT, WITH EBITDA GROWING MODESTLY WHEN ADJUSTED FOR
SPECIAL INCOME

Munich, August 3, 2015 - Wacker Chemie AG generated both year-over-year and
quarter-over-quarter sales growth from April through June 2015, mainly
thanks to higher volumes and favorable exchange-rate effects. In Q2 2015,
the Munich-based chemical company generated sales of EUR1,370.5 million
compared with EUR1,242.3 million a year ago, up a good 10 percent year over
year and almost 3 percent over the preceding quarter (EUR1,334.9 million).
The chemical divisions and Siltronic all achieved double-digit sales growth
compared with Q2 2014. Polysilicon sales, however, fell slightly year over
year as a result of lower prices.

WACKER's Q2 earnings before interest, taxes, depreciation and amortization
(EBITDA) amounted to EUR329.0 million (Q2 2014: EUR229.5 million), up by a
good 43 percent. Compared with the preceding quarter (EUR267.1 million),
EBITDA grew by around 23 percent. There was a corresponding improvement in
the EBITDA margin, which rose to 24.0 percent from 18.5 percent in Q2 2014
and 20.0 percent in Q1 2015.

Advance payments retained and damages received were a significant factor in
the strong rise in EBITDA. In the reporting quarter, WACKER terminated
contractual and delivery relationships with customers from the solar
sector, resulting in special income of EUR86.7 million. Adjusted for this
amount, WACKER's EBITDA grew by almost 6 percent year over year. There were
no non-recurring effects in Q2 2014.

WACKER's Q2 earnings before interest and taxes (EBIT) amounted to EUR187.9
million (Q2 2014: EUR82.1 million). That was more than twice as much as a
year ago, yielding an EBIT margin of 13.7 percent (Q2 2014: 6.6 percent).
Here, too, special income at WACKER POLYSILICON had a positive impact on
EBIT. Adjusted for non-recurring effects, EBIT at WACKER increased by a
good 23 percent year over year. Net income for the reporting quarter was
EUR108.2 million (Q2 2014: EUR29.4 million) and earnings per share came to
EUR2.21 (Q2 2014: EUR0.64).

WACKER confirmed its full-year forecast for 2015. The company is expecting
Group sales, which totaled EUR4.83 billion in 2014, to rise by around 10
percent, putting the company over the EUR5-billion mark for the first time
in its history. EBITDA on a comparable basis, i.e. adjusted for special
income, is expected to rise slightly. Group net income is projected to be
lower than a year ago because special income will probably not be as high
as in 2014.

"At the midway point in the year, we are well on track to achieve the
targets we set for 2015," said CEO Rudolf Staudigl in Munich on Monday.
"Amid higher volumes and currency tailwinds, Group sales grew markedly in
the second quarter. We further enhanced our profitability, even without
considering non-recurring effects. Although challenges in the economy are
increasing, we are optimistic that our operating activities will continue
to develop positively in the second half of the year."

Regions
In the reporting quarter, Asia remained by far the largest market for
WACKER products, accounting for 42 percent of the the company's sales in
the period April through June (Q2 2014: 42 percent). At EUR577.4 million
(Q2 2014: EUR525.5 million), sales were up 10 percent year over year. Apart
from WACKER POLYSILICON, where sales declined, every division posted
double-digit growth in this region. Silicones and polymer products
performed particularly well. Compared with Q1 2015 (EUR569.3 million), the
WACKER Group increased its sales by over 1 percent in Asia.

In Europe, WACKER achieved second-quarter sales of EUR314.1 million (Q2
2014: EUR300.8 million), up a good 4 percent year over year and almost 6
percent quarter over quarter (EUR297.0 million). All of the business
divisions exceeded their respective prior-year figures, except for WACKER
POLYMERS, whose sales in Europe held steady. Relative to Q1 2015, every
division grew its sales in Europe.

WACKER's sales in Germany came in at EUR172.1 million in the reporting
quarter (Q2 2014: EUR161.6 million), up almost 7 percent over a year ago,
but a good 2 percent less than in Q1 2015 (EUR176.0 million). Sales of
polysilicon and silicones, in particular, grew year over year.

In the Americas, the Q2 sales trend remained strongly influenced by the
favorable effects of the weak euro. At the same time, the good economic
conditions in the reporting quarter helped fuel brisk customer demand for
WACKER's products. Silicones performed particularly strongly in this
region. Overall, WACKER sales in the Americas totaled EUR249.8 million for
the quarter through June 2015 (Q2 2014: EUR207.2 million), up almost 21
percent on a year ago and a good 2 percent more than in Q1 2015 (EUR243.8
million).

Group sales in the markets combined under "Other regions" totaled EUR57.1
million in Q2 2015, after EUR47.5 million in Q2 2014 and EUR48.8 million in
Q1 2015. In total, WACKER generated over 87 percent of its second-quarter
sales with customers outside Germany (Q2 2014: 87 percent).

Investments and Net Cash Flow
The WACKER Group invested EUR214.2 million in the second quarter of 2015
(Q2 2014: EUR101.0 million). That was more than twice as much as a year
ago, and was the result of project-related factors and changes in currency
effects. The Group's net cash flow came to EUR21.0 million in Q2 2015 (Q2
2014: EUR49.6 million). The main reason for this substantial year-over-year
decline was higher capital expenditure than in Q2 2014. On the other hand,
good operating performance as well as special income at WACKER POLYSILICON
had a positive impact on cash flow.

The demand-driven expansion of polysilicon production capacities remained
the focus of investment activities at the WACKER Group in the second
quarter, with projects of this kind accounting for almost 80 percent of the
Group's total investment spending during the quarter. Construction of the
new polysilicon site in Charleston, Tennessee (USA) continued on schedule
in the current reporting period. Before the end of this year, WACKER will
begin ramping up the facilities at this site, the biggest single investment
project in the company's history. In parallel, the production output of the
existing hyperpure polysilicon facilities at the Burghausen and Nünchritz
sites in Germany is to be expanded by optimizing the processes already in
place. WACKER intends to increase its overall annual production capacity
for polysilicon to about 80,000 metric tons by 2017.

Further capital expenditures during the reporting quarter focused on
increasing capacities for polymer products. WACKER is expanding its
production plants for vinyl acetate-ethylene copolymer dispersions at
Calvert City, Kentucky (USA), where it is building a new reactor with an
annual capacity of 85,000 metric tons. Capital expenditures for the new
facilities and for infrastructure expansion amount to some EUR50 million.
The new reactor is due to come on stream in the next few weeks.

At Burghausen (Germany), WACKER officially started up a new
dispersible-polymer-powder plant with an annual capacity of 50,000 metric
tons in mid-April. In early June, a new plant for specialty monomers also
came on stream at Burghausen, with an annual capacity of 3,800 metric tons.
The specialty monomers in question - vinyl neodecanoate and vinyl laurate -
are important raw materials for producing high-value specialty grades of
dispersible polymer powders. The new facilities reinforce WACKER's position
as the world's biggest manufacturer of dispersible polymer powders in a
growth market shaped by such global trends as urbanization, renovation and
energy efficiency.

Employees
Relative to Q1 2015, the number of WACKER employees worldwide changed only
marginally during the second quarter of 2015. The Group had 16,928
employees as of June 30, 2015 (March 31, 2015: 16,844). At the end of the
reporting quarter, WACKER had 12,378 employees in Germany (March 31, 2015:
12,400) and 4,550 at its international sites (March 31, 2015: 4,444).

Business Divisions
WACKER SILICONES increased its sales and earnings in Q2 2015. Between April
and June 2015, the division generated total sales of EUR506.3 million (Q2
2014: EUR441.2 million). It was the first time that it exceeded the
half-a-billion-euro threshold in a single quarter. Relative to a year ago,
sales were up almost 15 percent. Compared with Q1 2015 (EUR474.8 million),
WACKER SILICONES achieved close to 7 percent growth. Favorable exchange
rates and higher volumes were the main factors driving sales. Somewhat
improved prices in certain product segments also lifted sales year over
year. Higher sales were the main reason that WACKER SILICONES posted a
substantial increase in EBITDA in Q2 2015. Second-quarter EBITDA reached
EUR77.3 million (Q2 2014: EUR57.4 million), almost 35 percent more than a
year ago. Compared with Q1 2015 (EUR67.7 million), EBITDA rose by around 14
percent. The EBITDA margin for the second quarter of 2015 was 15.3 percent,
after 13.0 percent in the prior-year period and 14.3 percent in Q1 2015.

In Q2 2015, WACKER POLYMERS achieved total sales of EUR314.6 million (Q2
2014: EUR285.5 million), up by over 10 percent. Compared with the first
quarter (EUR284.6 million), sales grew by almost 11 percent. Favorable
exchange rates, higher overall volumes and better prices year over year
contributed to this sales growth. Compared with a year ago, EBITDA at
WACKER POLYMERS improved substantially in Q2 2015, climbing almost 31
percent to EUR56.8 million (Q2 2014: EUR43.5 million). The main reasons for
this growth were higher sales due to favorable exchange rates and to higher
quantities of dispersible polymer powders sold. At the same time, the
division almost matched its first-quarter EBITDA (EUR59.9 million). The
EBITDA margin for the second quarter was 18.1 percent, after 15.2 percent a
year ago and 21.0 percent in the first quarter.

In the second quarter of 2015, WACKER BIOSOLUTIONS generated total sales of
EUR52.7 million (Q2 2014: EUR46.6 million), 13 percent more than a year
ago. Favorable exchange rates and higher prices were the main drivers of
this growth. Relative to Q1 2015 (EUR49.4 million), sales rose by close to
7 percent. Acetylacetone and cysteine performed especially well year over
year. WACKER BIOSOLUTIONS also further enhanced its EBITDA in Q2 2015,
which at EUR9.5 million was up by about 16 percent over Q2 2014 (EUR8.2
million). Higher sales were the main factor driving this growth. Compared
with the first quarter (EUR8.8 million), EBITDA at WACKER BIOSOLUTIONS rose
by 8 percent. The EBITDA margin for the reporting quarter amounted to 18.0
percent, after 17.6 percent in Q2 2014 and 17.8 percent in Q1 2015.

In Q2 2015, WACKER POLYSILICON achieved total sales of EUR261.3 million (Q2
2014: EUR273.2 million), a good 4 percent less than a year ago. This
decrease stemmed mainly from the fact that euro prices for solar silicon
were somewhat lower compared with the same quarter last year. Relative to
Q1 2015 (EUR289.4 million), sales were down by almost 10 percent due to
lower volumes. After robust demand in the first quarter of the year, many
customers reduced their inventory levels in the second quarter and ordered
less polysilicon. Euro prices for polysilicon declined slightly compared
with Q1. WACKER POLYSILICON's second-quarter EBITDA amounted to EUR161.4
million (Q2 2014: EUR87.9 million). This year-over-year increase of almost
84 percent yielded an EBITDA margin of 61.8 percent (Q2 2014: 32.2
percent). Relative to Q1 2015 (EUR78.7 million), WACKER POLYSILICON more
than doubled its EBITDA. This strong growth was attributable to advance
payments retained and damages received. In the reporting quarter, the
division terminated contractual and delivery relationships with customers
from the solar sector, resulting in special income of EUR86.7 million.
Earnings in Q2 2014 had not been influenced by any non-recurring effects of
this type. Adjusted for advance payments retained and damages received,
second-quarter EBITDA at WACKER POLYSILICON was 15 percent below the
prior-year level. The main reasons for the decline were lower polysilicon
prices relative to a year ago and higher start-up costs for the site in
Charleston, Tennessee (USA). Ongoing measures to enhance efficiency and
productivity could not fully compensate for this decrease. In line with the
forecast, the adjusted EBITDA margin in Q2 2015 was 28.6 percent.

At Siltronic, markedly higher volumes, especially for 300 mm wafers, led to
higher sales and earnings year over year. Siltronic generated total sales
of EUR246.7 million in the second quarter of 2015 (Q2 2014: EUR210.4
million), a good 17 percent more than a year ago. Sales rose by over 3
percent relative to Q1 2015 (EUR238.7 million). In addition to higher
volumes, the weak euro had a favorable impact on sales in the reporting
quarter. Although prices for silicon wafers, which are mostly invoiced in
US dollars, were noticeably lower than a year ago, the favorable exchange
rate meant that average euro prices were higher. Quarter over quarter,
wafer prices were virtually unchanged. Siltronic achieved EBITDA of EUR31.4
million in Q2 2015 (Q2 2014: EUR28.1 million). That was a rise of close to
12 percent and yielded an EBITDA margin of 12.7 percent (Q2 2014: 13.4
percent). Sales growth and higher volumes, especially for 300 mm wafers,
were the main reasons for the EBITDA increase. Good coverage of fixed costs
thanks to high plant utilization was another factor influencing earnings.
In addition, the efforts made by Siltronic to cut costs and enhance
productivity are having a lasting, positive effect on earnings. Compared
with the preceding quarter (EUR40.0 million), Siltronic's EBITDA decreased
by almost 22 percent, mainly due to EUR17.6 million in currency hedging
losses and currency translation effects with respect to receivables.

Outlook
Consensus estimates by economic experts indicate that the global economy is
set to continue growing moderately through the rest of 2015. This, however,
presupposes that there will be no further escalation of financial risks and
geopolitical conflicts, and that Chinese stock-market turbulence will be
only temporary.

Sales at WACKER SILICONES are expected to increase substantially in 2015.
Particular areas of growth are products and applications for personal care
and medical technology, as well as for the electrical and electronics
sectors. EBITDA is expected to be markedly above the prior-year figure.
However, higher prices for silicon-metal will dampen that increase
somewhat.

WACKER POLYMERS is anticipating a significant increase in sales for the
year as a whole, with both dispersions and dispersible polymer powders
expected to help drive this growth. The division foresees a substantial
year-over-year increase in EBITDA.

WACKER BIOSOLUTIONS, too, is expected to post substantial growth in 2015.
Now that Scil Proteins Production GmbH in Halle (Germany) has been
integrated, the division sees further growth potential for its biologics
business. Thanks to new product developments, substantial growth is
anticipated in the nutrition segment as well. EBITDA at WACKER BIOSOLUTIONS
should also show a clear year-over-year increase.

In WACKER's polysilicon business, both volumes and sales are projected to
rise slightly in 2015. The company expects the photovoltaic market to
continue on its growth trajectory. Nevertheless, overcapacity persists
along the entire supply chain. That being the case, a further reduction in
polysilicon production costs remains the key objective. EBITDA is forecast
to decline significantly year-over-year, since less special income - in the
form of advance payments retained and damages received - is expected in
2015 than was posted in 2014. EBITDA will also be reduced by start-up costs
at the new polysilicon production site in Charleston, Tennessee (USA).

Siltronic, too, expects to achieve higher full-year sales in 2015 amid
somewhat higher volumes and more favorable exchange rates than last year.
Siltronic expects the market for 300 mm silicon wafers to continue growing,
while demand for 200 mm wafer diameters is likely to remain stable. Demand
for smaller-diameter wafers is expected to decline slightly. EBITDA is
projected to increase substantially year on year.

Overall, WACKER expects its full-year 2015 sales to rise by about 10
percent. The company anticipates a moderate year-over-year rise in EBITDA
on a comparable basis, i.e. adjusted to exclude special income. The return
on capital employed (ROCE) is expected to be slightly lower than last
year's figure of 8.4 percent. At about EUR775 million, capital expenditures
will be higher than last year. Depreciation will amount to around EUR625
million, slightly higher than last year's figure. Net cash flow will be
slightly positive. Net financial debt at year-end is expected to remain
roughly at the prior-year level. Group net income is projected to be lower
than last year.

Information for editorial offices: The Q2 2015 report is available for
download on the WACKER website (www.wacker.com) under Investor Relations.

Key Figures of the WACKER Group

                                                                     Change
EUR million                             Q2 2015       Q2 2014          in %
Sales                                   1,370.5       1,242.3          10.3
EBITDA1                                   329.0         229.5          43.4
EBITDA margin2 (%)                         24.0          18.5             -
EBIT3                                     187.9          82.1          >100
EBIT margin2 (%)                           13.7           6.6             -

Financial result                          -19.9         -23.0         -13.5
Income before taxes                       168.0          59.1          >100
Net income for the period                 108.2          29.4          >100

Earnings per share (EUR)                   2.21          0.64          >100

Capital expenditures                      214.2         101.0          >100
(including financial assets)
Net cash flow4                             21.0          49.6         -57.7


                                                                     Change
EUR million                             6M 2015       6M 2014          in %
Sales                                   2,705.4       2,399.7          12.7
EBITDA1                                   596.1         514.7          15.8
EBITDA margin2 (%)                         22.0          21.4             -
EBIT3                                     314.2         215.9          45.5
EBIT margin2 (%)                           11.6           9.0             -

Financial result                          -26.9         -46.7         -42.4
Income before taxes                       287.3         169.2          69.8
Net income for the period                 178.8          93.6          91.0

Earnings per share (EUR)                   3.63          1.99          82.2

Capital expenditures                      389.1         190.3          >100
(including financial assets)
Net cash flow4                             38.4         154.1         -75.1



EUR million                         June 30, 2015 June 30, 2014 Dec. 31,
2014
Equity                                  2,687.7       2,066.1       1,946.5
Financial liabilities                   1,508.4       1,458.0       1,601.5
Net financial debt5                       938.9         920.9       1,080.6
Total assets                            7,425.7       6,616.1       6,947.2

Employees (number at end of              16,928        16,758
period)                                                              16,703

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 result, 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 additions due to finance leases.
5 Sum of cash and cash equivalents, noncurrent and current securities, and
noncurrent and current financial liabilities.

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
Presse und Information
Christof Bachmair
Tel. [phone]
[e-mail]



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Language: English
Company: Wacker Chemie AG
Hanns-Seidel-Platz 4
81737 München
Germany
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
Internet: www.wacker.com
ISIN: DE000WCH8881
WKN: WCH888
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart


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