27.10.2016
Wacker Chemie AG DE000WCH8881
DGAP-News: Wacker Chemie AG: WACKER ENDS Q3 2016 WITH GOOD RESULTS
DGAP-News: Wacker Chemie AG / Key word(s): Quarter Results
Wacker Chemie AG: WACKER ENDS Q3 2016 WITH GOOD RESULTS
27.10.2016 / 07:14
The issuer is solely responsible for the content of this announcement.
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- AT EUR1.35 BILLION, GROUP SALES FOR Q3 2016 DECLINE BY CLOSE TO 1
PERCENT YEAR OVER YEAR DUE TO PRICES AND BY 3 PERCENT QUARTER OVER
QUARTER AMID LOWER VOLUMES
- EBITDA OF EUR301 MILLION UP 14 PERCENT VERSUS LAST YEAR DUE TO GOOD
COST LEVELS, AND ON A PAR WITH THE PRECEDING QUARTER
- NET INCOME FOR Q3 AMOUNTS TO EUR68 MILLION
- AT EUR229 MILLION, NET CASH FLOW FOR Q3 2016 SUBSTANTIALLY HIGHER THAN
A YEAR AGO
- FORECAST UNCHANGED: EBITDA FOR FULL-YEAR 2016 - WHEN ADJUSTED FOR
SPECIAL INCOME - SHOULD REACH THE UPPER END OF THE PROJECTED RANGE OF 5
TO 10 PERCENT, WHILE GROUP SALES ARE EXPECTED TO GROW BY A LOW SINGLE-
DIGIT PERCENTAGE
Munich, October 27, 2016 - Wacker Chemie AG's Q3 2016 sales were slightly
lower year over year, while its earnings before interest, taxes,
depreciation and amortization (EBITDA) were substantially higher than last
year. The Munich-based chemical group posted sales of EUR1,346.1 million in
the reporting quarter (Q3 2015: EUR1,357.9 million), down 1 percent. This
slight decrease was chiefly due to lower year-over-year prices for solar
silicon, semiconductor wafers and some chemical products. Generally higher
volumes did not fully offset these price effects. Relative to the preceding
quarter (EUR1,386.2 million), sales were down by 3 percent, primarily due
to a decline in volumes for polysilicon and some chemical products.
WACKER achieved EBITDA of EUR300.9 million in Q3 2016, 14 percent more than
a year ago (EUR264.3 million) and on a par with the preceding quarter
(EUR300.0 million). The Group's EBITDA margin for July through September
2016 was 22.4 percent, compared with 19.5 percent a year ago and 21.6
percent in the prior quarter. The substantial year-over-year increase in
EBITDA was primarily attributable to the good cost level.
Group earnings before interest and taxes (EBIT) amounted to EUR115.2
million in Q3 2016 (Q3 2015: EUR125.5 million). That was a year-over-year
decrease of 8 percent and yielded an EBIT margin of 8.6 percent, compared
with 9.2 percent a year ago. Substantially higher depreciation contributed
to the year-over-year decline in EBIT. Net income for the reporting quarter
amounted to EUR67.5 million (Q3 2015: EUR58.2 million) and earnings per
share came in at EUR1.29 (Q3 2015: EUR1.21).
The full-year 2016 forecast remains unchanged. The company continues to
expect a low single-digit percentage increase in Group sales. EBITDA on a
comparable basis - i.e. adjusted to exclude special income from damages
received and from terminated contractual and delivery relationships with
solar customers - is expected to be between 5 and 10 percent higher than
last year. After the positive business performance in the first half of the
year, WACKER already announced at the end of July that it expected adjusted
EBITDA to come in at the upper end of this range.
"Although the underlying conditions were not always easy, WACKER performed
well from July through September," said CEO Rudolf Staudigl in Munich on
Thursday. "EBITDA at the chemical divisions and at Siltronic continued to
grow both year over year and quarter over quarter. The market environment
for our polysilicon business was more difficult, with solar customers
ordering substantially less material in September than in the preceding
months. Since then, however, there have been increasing indications that
demand for solar silicon is picking up again."
Regions
In Q3 2016, sales were subdued in every region except Germany. Group sales
in Asia amounted to EUR571.5 million in the reporting quarter, down by
around 1 percent from last year's figure of EUR575.8 million. In Europe
(excluding Germany), WACKER achieved sales of EUR302.0 million in Q3 2016
(Q3 2015: EUR316.5 million), some 5 percent below the year-earlier figure.
The business trend in Germany was positive, with sales totaling EUR182.9
million in the reporting quarter, compared with EUR173.6 million a year
earlier, a rise of about 5 percent. In the Americas, sales of EUR238.6
million were on a par with Q3 2015 (EUR238.9 million).
Capital Expenditures and Net Cash Flow
In Q3 2016, the Group's capital expenditures amounted to EUR98.9 million
(Q3 2015: EUR220.5 million), down 55 percent. The funds were invested,
among other things, in expanding capacities for downstream silicone
products and in the further automation of production at Siltronic.
Commissioning of the production facilities at WACKER's new polysilicon site
in Charleston, Tennessee (USA), was completed as planned in the reporting
quarter.
The Group's net cash flow was EUR229.9 million in Q3 2016, after EUR36.2
million in Q3 2015. This marked increase was chiefly due to a combination
of higher gross cash flow and substantially lower capital expenditures.
Employees
Relative to the preceding quarter, the number of WACKER employees worldwide
remained virtually unchanged in Q3 2016. As of September 30, the Group had
17,136 employees (June 30, 2016: 17,081). As of the end of the reporting
quarter, WACKER had 12,179 employees in Germany (June 30, 2016: 12,230) and
4,957 at its international sites (June 30, 2016: 4,851).
Business Divisions
In Q3 2016, WACKER SILICONES posted total sales of EUR503.1 million, on a
par with the year-earlier level (EUR501.9 million). While volumes were
somewhat higher than a year ago, prices for a number of product groups
edged lower. Negative exchange-rate effects also decreased sales
marginally. The division's sales were some 2 percent below the preceding
quarter (EUR514.4 million) due to price and volume effects. EBITDA at
WACKER SILICONES reached EUR100.7 million in the reporting quarter, around
23 percent higher than a year ago (EUR81.6 million). Compared with the
preceding quarter (EUR93.7 million), it was up 8 percent. Earnings were
lifted by high plant utilization - over 90 percent on average - and by low
costs. The EBITDA margin improved to 20.0 percent in Q3 2016, after 16.3
percent a year ago and 18.2 percent in the preceding quarter.
At WACKER POLYMERS, total sales of EUR308.2 million in the reporting
quarter were 2 percent lower than a year ago (EUR313.0 million) and 5
percent below the preceding quarter (EUR325.7 million). Noticeably higher
dispersion volumes year over year did not fully compensate for somewhat
lower prices in a number of product groups. Negative exchange-rate effects,
too, weighed slightly on the sales trend. Compared with Q2 2016, average
prices were virtually unchanged, while volumes were lower on balance. The
division's EBITDA grew to EUR73.2 million in the reporting quarter,
compared with EUR64.7 million a year earlier - up 13 percent. This gain was
essentially due to the low cost level, which in turn benefited from high
plant utilization of almost 90 percent. Relative to the preceding quarter
(EUR78.2 million), EBITDA decreased by around 6 percent. The decline
stemmed not only from lower sales, but also from a quarter-over-quarter
increase in the price of ethylene, a base material. The EBITDA margin came
in at 23.8 percent in the reporting quarter, after 20.7 percent last year
and 24.0 percent in the preceding quarter.
WACKER BIOSOLUTIONS generated total sales of EUR54.0 million from July
through September 2016. That was 7 percent more than a year ago (EUR50.4
million) and 2 percent more than in Q2 2016 (EUR53.2 million). Higher
volumes in a number of segments were the main growth driver. On the other
hand, sales were slowed by a slight decline in prices for some products,
both year over year and quarter over quarter. EBITDA at WACKER BIOSOLUTIONS
reached EUR11.3 million in the reporting quarter, markedly above both last
year (EUR7.2 million) and the preceding quarter (EUR9.0 million). This
strong growth was fueled by higher sales, by positive product-mix effects
and by the division's good cost situation, which in turn was partly due to
high plant utilization. The EBITDA margin came in at 20.9 percent, after
14.3 percent a year ago and 16.9 percent in Q2 2016.
WACKER POLYSILICON generated sales totaling EUR253.0 million in the
reporting quarter, down 7 percent over both last year (EUR271.4 million)
and the preceding quarter (EUR272.2 million). Volumes remained almost
unchanged versus last year, while average prices for solar silicon were
lower. Compared with the preceding quarter, volumes slowed substantially
because customers ordered less solar silicon toward the end of the
reporting quarter. WACKER POLYSILICON's EBITDA totaled EUR82.3 million from
July through September (Q3 2015: EUR91.8 million). The main reason for this
10-percent decline was that EUR17.8 million in advance payments retained
and damages received were recorded in Q3 2015, whereas no special income of
this kind was posted in the reporting quarter. Adjusted for this income,
the division's EBITDA grew by 11 percent year over year. Relative to the
preceding quarter (EUR77.7 million), EBITDA was up 6 percent. This increase
reflected the fact that no further start-up costs for the new Charleston
site were incurred in the reporting quarter. WACKER POLYSILICON's July-
through-September EBITDA margin was 32.5 percent, after 33.8 percent in Q3
2015 and 28.5 percent in Q2 2016.
Siltronic generated total sales of EUR236.7 million in Q3 2016, up some 3
percent from last year's EUR230.6 million. A year-over-year increase in
volumes, including inventory sales, compensated for lower average prices.
Favorable exchange rates also had a positive impact on the sales trend.
Compared with the preceding quarter (EUR229.8 million), sales were also up
3 percent. This rise was due to somewhat higher volumes than in Q2 2016 and
positive exchange-rate effects, with average prices remaining virtually
unchanged. Reporting-quarter EBITDA at Siltronic reached EUR36.9 million,
after EUR29.4 million a year earlier, an increase of 26 percent. In Q3
2015, currency-hedging losses had reduced EBITDA by EUR15.5 million, while
the corresponding reporting-quarter figure was only EUR6.8 million.
Relative to the preceding quarter (EUR35.0 million), EBITDA was up by
around 5 percent, with higher sales and a good cost situation lifting
earnings. Siltronic's EBITDA margin was 15.6 percent in the reporting
quarter, after 12.7 percent in Q3 2015 and 15.2 percent in Q2 2016.
Outlook
WACKER expects its chemical-business sales to increase slightly for full-
year 2016, whereas sales at Siltronic and WACKER POLYSILICON are likely to
edge down.
EBITDA at WACKER SILICONES should be markedly above last year's figure.
WACKER POLYMERS also expects to post a noticeable increase compared with
last year. WACKER BIOSOLUTIONS projects its EBITDA margin to remain more or
less unchanged year over year. WACKER POLYSILICON anticipates that its
EBITDA will decline significantly year over year, since less special income
from advance payments retained and damages received will be posted in 2016
than last year. Full-year EBITDA will also be reduced by start-up costs at
the new polysilicon production site in Charleston, Tennessee. Siltronic
continues to anticipate a slight improvement in its EBITDA margin compared
with last year.
Overall, WACKER continues to expect Group sales to rise by a low single-
digit percentage in fiscal 2016. EBITDA should climb by between 5 and 10
percent on a comparable basis, i.e. when adjusted to exclude special
income. As already announced at the end of July following the company's
positive business performance in the first half of the year, WACKER
continues to expect adjusted EBITDA to come in at the upper end of this
range. The EBITDA margin, on the other hand, will be somewhat lower, since
no major special-income items are expected. Capital expenditures will come
to about EUR425 million, substantially lower than a year ago. Depreciation
will amount to around EUR720 million, significantly above last year's
level. Group net income should be markedly lower year over year. WACKER
expects net cash flow to be clearly positive. Net financial debt at year-
end 2016 is anticipated to be slightly lower than last year.
Information for editorial offices: The Q3 2016 report is available for
download on the WACKER website (www.wacker.com) under Investor Relations.
Key Figures of the WACKER Group
EURmillion Q3 2016 Q3 2015 Change in % Sales 1,346.1 1,357.9 -0.9 EBITDA1 300.9 264.3 13.8 EBITDA margin2 (%) 22.4 19.5 - EBIT3 115.2 125.5 -8.2 EBIT margin2 (%) 8.6 9.2 - Financial result -25.8 -23.5 9.8 Income before income 89.4 102.0 -12.4 taxes Net income for the 67.5 58.2 16.0 period Earnings per share 1.29 1.21 6.7 (EUR) Capital expenditures 98.9 220.5 -55.1 Depreciation 185.7 138.8 33.8 Net cash flow4 229.2 36.2 >100 EURmillion 9M 2016 9M 2015 Change in % Sales 4,046.6 4,063.3 -0.4 EBITDA1 829.8 860.4 -3.6 EBITDA margin2 (%) 20.5 21.2 - EBIT3 285.0 439.7 -35.2 EBIT margin2 (%) 7.0 10.8 - Financial result -78.8 -50.4 56.3 Income before income 206.2 389.3 -47.0 taxes Net income for the 142.5 237.0 -39.9 period Earnings per share 2.85 4.84 -41.1 (EUR) Capital expenditures 298.1 609.6 -51.1 Depreciation 544.8 420.7 29.5 Net cash flow4 343.2 74.6 >100 EURmillion Sept. 30, 2016 Sept. 30, 2015 Dec. 31, 2015 Total assets 7,606.6 7,322.0 7,264.4 Equity 2,073.8 2,752.7 2,795.1 Equity ratio (%) 27.3 37.6 38.5 Financial liabilities 1,635.7 1,446.9 1,455.4 Net financial debt5 967.8 970.2 1,074.0 Employees (number at 17,136 17,021 16,972 end of period)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 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 Media Relations & Information Christof Bachmair Tel. +49 89 6279-1830 [email protected] --------------------------------------------------------------------------- 27.10.2016 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. Archive at 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, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 514921 27.10.2016
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