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WACKER's Preliminary figures indicate strong earnings and sales growth in fiscal 2006

Published on 2007-02-21. Author : SpecialChem

Munich -- According to its preliminary business results for fiscal 2006, Wacker Chemie AG saw a record year in terms of sales and earnings. Driven by capacity additions, a positive environment for semiconductor wafers and a strong demand in most segments, consolidated Group sales went up by 21 percent to some €3.33 billion (2005: €2.76 billion). EBITDA (Earnings before Interest, Tax, Depreciations and Amortization) grew even faster at 38 percent to some €785 million (2005, adjusted: €567 million).

Q4 2006 saw stronger results than in the previous year. Based on a solid pricing environment, Siltronic achieved an EBITDA-Margin in the fourth quarter of 33 percent, up from 30 percent in Q3 2006, and up from 27 percent in Q4 2005. For the full year, Siltronic's sales are expected to reach some €1.26 billion (2005: €925 million), while EBITDA is estimated to come in at around €355 million (2005, adjusted: €153 million).

WACKER POLYSILICON benefited from the availability of additional material from the finalization of its Poly 4 expansion stage, which helped to drive up production volumes to 6,200 metric tons for the full year 2006. Preliminary results indicate full-year divisional sales of around €325 million (2005: €288 million), EBITDA is expected to reach some €115 million (2005: €90 million).

The chemicals divisions saw in Q4 the expected seasonal downturn. However, this trend has been balanced to a certain extent by a strong demand for WACKER's silicone and polymer products from the construction sector due to the mild winter conditions. The chemicals divisions' 2006 full-year sales are estimated to reach around €1.95 billion (2005: €1.70 billion) while EBITDA is expected to come in at some € 345 million (2005: €328 million).

Earnings per share for 2006 are expected to come in at about €6.40 based on a tax rate of around 25 percent. In 2005, WACKER Group had earned €2.90 per share outstanding.

WACKER Group CFO Joachim Rauhut commented: "In its first year at the stock exchange, WACKER achieved a return on capital employed of some 18 percent, thus setting a new all time high. We consider our strong 2006 results combined with our leading market positions and capacity additions running on schedule as an excellent foundation for the Group's further sales and earnings growth in the current fiscal year."

It should be noted that indicated results for the fourth quarter and the full year 2006 are preliminary. WACKER's actual results for the fourth quarter and the full year 2006 will be reported on March 22, 2007.

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.

Source: Wacker


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