30.04.2015
Wacker Chemie AG DE000WCH8881
DGAP-News: Wacker Chemie AG: WACKER RAISES ITS SALES FORECAST AFTER GOOD FIRST QUARTER
DGAP-News: Wacker Chemie AG / Key word(s): Quarter Results
Wacker Chemie AG: WACKER RAISES ITS SALES FORECAST AFTER GOOD FIRST
QUARTER
30.04.2015 / 07:14
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- GROUP SALES FOR Q1 2015 REACH EUR1.33 BILLION, UP 15 PERCENT YEAR ON
YEAR AND 12 PERCENT QUARTER ON QUARTER
- ALL DIVISIONS LIFT THEIR SALES THANKS TO ROBUST CUSTOMER DEMAND AND
POSITIVE EXCHANGE-RATE EFFECTS
- AT EUR267 MILLION, FIRST-QUARTER EBITDA DECLINES 6 PERCENT ON Q1 2014,
BUT RISES 53 PERCENT WHEN ADJUSTED FOR NON-RECURRING EFFECTS
- NET INCOME FOR Q1 2015 AMOUNTS TO EUR71 MILLION
- SALES FORECAST RAISED SLIGHTLY: GROUP SALES FOR FULL-YEAR 2015 ARE
EXPECTED TO INCREASE BY ABOUT 10 PERCENT, WITH EBITDA GROWING MODESTLY
WHEN ADJUSTED FOR SPECIAL INCOME
Munich, April 30, 2015 - Wacker Chemie AG has raised its sales forecast for
full-year 2015 following a good performance in the first quarter. The
company generated total sales of EUR1,334.9 million from January through
March 2015 (Q1 2014: EUR1,157.4 million), up by more than 15 percent year
on year and almost 12 percent quarter on quarter (Q4 2014: EUR1,194.5
million). The main reason for this growth was higher volumes than in the
previous year, especially for solar silicon and semiconductor wafers. The
positive effects of a weaker euro were another decisive factor in sales
growth.
WACKER's earnings before interest, taxes, depreciation and amortization
(EBITDA) amounted to EUR267.1 million in Q1 2015 (Q1 2014: EUR285.2
million), down about 6 percent from a year ago. The main reason for the
decrease was a non-recurring effect. In Q1 2014, WACKER had restructured
its contractual relationships with a solar-industry customer, as a result
retaining advance payments and receiving damages. That resulted in special
income of EUR114.0 million. The comparable income for the reporting quarter
was EUR4.7 million. Adjusted for this special income, WACKER's EBITDA grew
by about 53 percent year on year. Relative to Q4 2014 (EUR180.1 million),
WACKER's EBITDA was some 48 percent higher. The EBITDA margin for Q1 2015
was 20.0 percent compared with 24.6 percent in the same quarter last year
and 15.1 percent in Q4 2014.
The Group's earnings before interest and taxes (EBIT) from January through
March 2015 totaled EUR126.3 million (Q1 2014: EUR133.8 million). This was
almost 6 percent less than a year ago and yielded an EBIT margin of 9.5
percent (Q1 2014: 11.6 percent). In this case, too, special income in Q1
2014 had an impact. Adjusted for non-recurring effects, WACKER's EBIT
increased more than sixfold year on year. Net income for the reporting
quarter was EUR70.6 million (Q1 2014: EUR64.2 million) and earnings per
share amounted to EUR1.42 (Q1 2014: EUR1.35).
WACKER has raised its sales forecast for full-year 2015 slightly. The
company now projects that Group sales will be around 10 percent higher than
the 2014 figure of EUR4.83 billion. EBITDA - adjusted on a comparable basis
to exclude special income - should also rise slightly. Group net income is
expected to be lower than a year ago because special income is unlikely to
be as high as in 2014.
"WACKER made a good start to 2015 during the first quarter," said CEO
Rudolf Staudigl in Munich on Thursday. "All of our divisions posted
double-digit sales growth. Global demand for our products is strong. In
addition, we are benefiting from positive exchange-rate effects. Given our
good start, we are optimistic that business operations will continue to
develop positively during the remainder of the year."
Regions
Asia remains WACKER's most important market, with the Group generating
almost 43 percent (Q1 2014: 42 percent) of its total sales there. Sales in
Asia came in at EUR569.3 million in Q1 2015 after EUR490.2 million in Q1
2014, a rise of about 16 percent. Growth was particularly strong in Asia
for silicones, dispersions and dispersible polymer powders. Polysilicon
operations, WACKER BIOSOLUTIONS and Siltronic posted double-digit sales
growth there as well. Relative to Q4 2014 (EUR523.2 million), Group sales
increased by almost 9 percent.
In Europe, WACKER achieved sales of EUR297.0 million in Q1 2015 (Q1 2014:
EUR274.1 million), a good 8 percent more than a year ago. Robust demand
enabled all business divisions to outperform their respective prior-year
figures. Relative to Q4 2014 (EUR262.2 million), sales were up by over 13
percent, with the usual seasonal effects contributing to this growth.
Group sales in Germany totaled EUR176.0 million in the quarter under review
(Q1 2014: EUR167.3 million), a year-on-year increase of roughly 5 percent.
Sales rose by 10 percent relative to Q4 2014 (EUR160.0 million), with
silicones business performing especially well quarter on quarter.
While sales growth in the Americas was strongly influenced by the positive
effects of the decline in the euro against the US dollar, the robust US
economy also fueled brisk customer demand for WACKER's products. Overall,
WACKER generated sales of EUR243.8 million in this region during the
reporting quarter (Q1 2014: EUR183.1 million), up more than 33 percent on a
year ago and over 19 percent more than in Q4 2014 (EUR204.5 million).
WACKER's sales in the markets combined under "Other Regions" totaled
EUR48.8 million in Q1 2015, after EUR42.7 million in Q1 2014 and EUR44.6
million in Q4 2014. In total, WACKER generated about 87 percent of its
first-quarter sales with customers outside Germany (Q1 2014: 86 percent).
Investments and Net Cash Flow
The WACKER Group invested EUR174.9 million in the first quarter of 2015 (Q1
2014: EUR89.3 million), about 96 percent more than a year ago due to
project-related factors. The Group's net cash flow in the first quarter was
EUR17.4 million, compared with EUR104.5 million a year ago. There are two
main reasons for this substantial decline: a higher level of investments
than in Q1 2014 due to project-related factors, and special income from
damages that was included in last year's figure.
The demand-driven expansion of polysilicon production capacities remains
the focus of investment spending. Construction of the new polysilicon site
in Charleston, Tennessee (USA) remained on schedule in the first quarter.
This project accounted for more than 70 percent of the Group's total
investment spending during the reporting quarter. The plant's start-up
phase is scheduled to begin in the second half of this year. 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 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. For example, 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. WACKER is also
building a new specialty-monomer plant for vinyl laurate and vinyl
neodecanoate at the Burghausen site with an annual capacity of around 4,000
metric tons. These new facilities will allow WACKER to meet growing demand
for high-quality polymeric binders and strengthen its position as the
world's leading manufacturer of ethylene-based dispersions and dispersible
polymer powders.
WACKER's new production plant for food-grade polyvinyl acetate (PVAc) solid
resins at Nanjing (China) officially came on stream in late March. With an
annual capacity of 20,000 metric tons, the plant is the largest of its kind
in Asia. One use for PVAc solid resins is to manufacture gumbase. WACKER's
former PVAc site at Wuxi in China is to be closed down later this year.
Employees
Relative to Q4 2014, the number of WACKER employees worldwide rose by close
to 1 percent during the first quarter of 2015. On March 31, 2015, the Group
had 16,844 employees (Dec. 31, 2014: 16,703), with 12,400 working in
Germany (Dec. 31, 2014: 12,366) and 4,444 at its international sites (Dec.
31, 2014: 4,337).
Business Divisions
WACKER SILICONES increased its sales and earnings in Q1 2015. The division
posted total sales of EUR474.8 million in January through March 2015 (Q1
2014: EUR425.3 million), almost 12 percent more than a year ago. Relative
to Q4 2014 (EUR419.6 million), sales rose by 13 percent. The favorable
effects of a weaker euro, and somewhat higher volumes both year on year and
quarter on quarter, were the main reasons for this growth. WACKER
SILICONES' first-quarter EBITDA totaled EUR67.7 million (Q1 2014: EUR49.1
million), up almost 38 percent on the prior-year quarter. This increase
largely stemmed from higher volumes and favorable exchange-rate effects. A
slight improvement in prices in specific product groups also had a positive
impact on profitability. Compared with Q4 2014 (EUR33.8 million), the
division's EBITDA more than doubled. The corresponding EBITDA margin
increased to 14.3 percent after 11.5 percent in Q1 2014 and 8.1 percent in
Q4 2014.
In Q1 2015, WACKER POLYMERS posted total sales of EUR284.6 million (Q1
2014: EUR238.7 million), a good 19 percent more than a year ago. Compared
with Q4 2014 (EUR252.2 million), sales grew by close to 13 percent. Higher
volumes were the main reason for this increase. Growth was also spurred by
positive exchange-rate effects. WACKER POLYMERS' EBITDA climbed some 75
percent year on year to reach EUR59.9 million after EUR34.2 million in the
same quarter last year. Compared with Q4 2014 (EUR23.6 million), EBITDA
more than doubled. This increase was mainly the result of higher volumes
and favorable exchange-rate effects. Additionally, measures to improve
productivity noticeably strengthened WACKER POLYMERS' profitability. The
division's EBITDA margin increased to 21.0 percent in the reporting quarter
(Q1 2014: 14.3 percent). The corresponding Q4 2014 figure was 9.4 percent.
WACKER BIOSOLUTIONS generated total sales of EUR49.4 million from January
through March 2015 (Q1 2014: EUR40.7 million), an increase of more than 21
percent year on year, and about 13 percent quarter on quarter (EUR43.7
million). Higher volumes and positive exchange-rate effects were the main
factors driving this increase. Sales were higher than a year ago at all
WACKER BIOSOLUTIONS business segments, with pharmaceutical proteins and
cyclodextrins performing particularly well. Earnings grew even more
strongly than sales. In Q1 2015, WACKER BIOSOLUTIONS generated EBITDA of
EUR8.8 million compared with EUR5.4 million a year earlier, a rise of 63
percent. Relative to Q4 2014 (EUR4.6 million), EBITDA almost doubled. The
EBITDA margin rose accordingly, reaching 17.8 percent after 13.3 percent in
Q1 2014 and 10.5 percent in Q4 2014. This earnings growth was chiefly the
result of higher volumes and favorable exchange-rate effects.
WACKER POLYSILICON posted total sales of EUR289.4 million in Q1 2015 (Q1
2014: EUR262.0 million), up almost 11 percent. Relative to Q4 2014
(EUR261.5 million), sales also climbed almost 11 percent. Strong volume
growth and somewhat better solar-silicon prices contributed to the positive
year-on-year sales trend. Prices declined slightly compared with Q4 2014.
WACKER POLYSILICON's first-quarter EBITDA of EUR78.7 million was around 56
percent lower than a year ago (EUR180.0 million). The main reason for the
decrease was a non-recurring effect: in Q1 2014, WACKER POLYSILICON had
retained advance payments and received damages, resulting in special income
of EUR114.0 million. The comparable income for the reporting quarter was
EUR4.7 million. Adjusted for these non-recurring effects, the division's
EBITDA improved by around 12 percent year on year. Compared with the fourth
quarter of last year (EUR88.8 million), WACKER POLYSILICON's EBITDA
decreased by over 11 percent. The decline was partly due to start-up costs
for the new polysilicon site in Charleston, Tennessee (USA) that rose in
line with the project's progress. In Q1 2015, WACKER POLYSILICON's EBITDA
margin came in at 27.2 percent, after 68.7 percent in Q1 2014 and 34.0
percent in Q4 2014.
Siltronic made a good start to 2015 with strong sales growth. Total
first-quarter sales climbed some 17 percent to EUR238.7 million, after
EUR203.8 million in Q1 2014. This increase was mainly due to significantly
higher volumes and positive exchange-rate effects compared with the
prior-year quarter. On the other hand, prices for silicon wafers were lower
year on year. Sales rose by almost 7 percent relative to Q4 2014 (EUR223.2
million). Overall, volumes and prices for silicon wafers were largely
unchanged quarter on quarter. Siltronic more than doubled its EBITDA
compared with last year, totaling EUR40.0 million in the quarter under
review (Q1 2014: EUR15.0 million). This rise stemmed chiefly from volume
increases, favorable exchange-rate effects and higher plant utilization
rates. Relative to Q4 2014 (EUR37.7 million), EBITDA rose by around 6
percent. The earnings trend also shows that Siltronic's measures to
optimize its cost structures and increase productivity are having an
enduring effect. Siltronic's first-quarter EBITDA margin was 16.8 percent,
after 7.4 percent in Q1 2014 and 16.8 percent in Q4 2014.
Outlook
According to the latest forecasts, the global economy will continue to grow
moderately in 2015. As long as prices for crude oil, energy and raw
materials remain at their current relatively low levels, global growth will
continue to strengthen. The regional differences in economic trends are
expected to persist and, in some cases, intensify further in the
foreseeable future.
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 should be markedly above the prior-year figure. However,
higher silicon-metal prices in particular will dampen that increase
somewhat.
For full-year 2015, WACKER POLYMERS expects to post significant sales
growth, with both dispersions and dispersible polymer powders expected to
help drive this growth. For EBITDA, the division is anticipating a marked
year-on-year increase.
WACKER BIOSOLUTIONS, too, is expected to post substantial full-year growth.
Now that Scil Proteins Production GmbH in Halle (Germany) has been
integrated, the division sees further growth potential for biologics
business. Thanks to new product developments, substantial growth is
anticipated in the food segment as well. EBITDA at WACKER BIOSOLUTIONS
should also show a clear year-on-year increase.
In WACKER's polysilicon business, both volumes and sales are projected to
rise 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. The EBITDA forecast is for a
significant year-on-year decline, 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, predicts sales growth for the current year. Somewhat higher
volumes and more favorable exchange rates than last year will be the main
contributors to higher sales. 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 compared
with last year.
Overall, WACKER expects its full-year 2015 sales to rise by about 10
percent. Compared with last year, the company anticipates a moderate rise
in EBITDA, when adjusted on a comparable basis 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. Capital expenditures will be higher than
last year, climbing to about EUR725 million. Depreciation will amount to
around EUR625 million, slightly above the prior-year level. Net cash flow
will be markedly positive. Net financial debt will rise by EUR200 - 300
million, mostly because of the investments at the new Charleston site in
the USA. Group net income is projected to be lower than last year.
Information for editorial offices: the Q1 2015 report is available for
download on the WACKER website (www.wacker.com) under Investor Relations.
WACKER's Key Figures
Change in EUR million Q1 2015 Q1 2014 % Sales 1,334.9 1,157.4 15.3 EBITDA1 267.1 285.2 -6.3 EBITDA margin2 (%) 20.0 24.6 - EBIT3 126.3 133.8 -5.6 EBIT margin2 (%) 9.5 11.6 - Financial result -7.0 -23.7 -70.5 Income before taxes 119.3 110.1 8.4 Net income for the period 70.6 64.2 10.0 Earnings per share (EUR) 1.42 1.35 5.1 Capital expenditures (including 174.9 89.3 95.9 financial assets) Net cash flow4 17.4 104.5 -83.3 March 31, March 31, Dec. 31, EUR million 2015 2014 2014 Equity 1,817.0 2,155.5 1,946.5 Financial liabilities 1,583.7 1,448.0 1,601.5 Net financial debt5 1,198.1 899.9 1,080.6 Total assets 7,430.7 6,589.2 6,947.2 Employees (number at end of period) 16,844 16,788 16,7031 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 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. +49 89 6279-1830 Fax +49 89 6279-1239 [email protected] --------------------------------------------------------------------- 30.04.2015 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. 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: [email protected] 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 End of News DGAP News-Service --------------------------------------------------------------------- 350889 30.04.2015
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