Wacker Chemie AG achieved its sales target for 2015 and slightly exceeded its earnings expectations. When presenting its annual report today, the Munich-based chemical company said that Group sales had advanced to €5.30 billion (2014: €4.83 billion), up about 10 percent. The increase mainly stemmed from higher volumes and positive exchange-rate effects. Earnings before interest, taxes, depreciation and amortization (EBITDA) in 2015 reached €1,048.8 million (2014: €1,042.3 million). The corresponding EBITDA margin was 19.8 percent (2014: 21.6 percent).
Despite the fact that special solar-sector income from advance payments retained and damages received from customers came in significantly lower year over year, EBITDA was essentially on a par with 2014. In full-year 2015, these special-income items amounted to €137.6 million (2014: €206.3 million). Adjusted for this effect, EBITDA reached €911.2 million in the reporting year (2014: €836.0 million). That was a gain of 9 percent. The Group’s earnings before interest and taxes (EBIT) advanced to €473.4 million in 2015 (2014: €443.3), adding 7 percent. On the bottom line, WACKER closed 2015 with net income of €241.8 million (2014: €195.4 million), a rise of about 24 percent.
In 2016, Wacker is confident to maintain its good business performance in a volatile environment. For the full year, it aims to lift its sales slightly. Group EBITDA should also advance slightly year over year, when adjusted to exclude solar-sector special income from damages received and from terminated contractual and delivery relationships with customers. This trend will be supported by Wacker’s stable chemical business with diversified applications, which is projected to expand further in 2016. Group net income, though, is likely to be significantly lower than in 2015 because of higher depreciation. Other factors weighing on earnings include start-up costs at the new Charleston site in Tennessee (USA), mainly during the first half-year, as well as lower year-over-year prices for polysilicon and reduced special income.
“The start-up costs at our new Tennessee site will impact earnings this year, but we expect sales and adjusted EBITDA to climb slightly,” said CEO Rudolf Staudigl in Munich on Thursday. “Our chemical business, which accounts for almost two-thirds of our sales and half of our EBITDA, is continuing its very encouraging trend. Since January, we have seen prices for polysilicon stabilizing, and even picking up slightly. In our semiconductor business, our priorities are to enhance our competitiveness and to continue working intensively on cutting costs. Siltronic anticipates cost-savings of between €30 million and €35 million in 2016. Operational excellence, a strict focus on customer needs, and innovation continue to be key strategic areas for securing our Group’s success.”