WACKER SILICONES boosted its total 2008 sales by €47.6 million to €1.41 billion (2007: €1.36 billion) – an increase of 3.5%. Sales volumes grew, thanks to growing demand for silicone products, particularly in industries such as electronics, photonics, medical technology and silicone rubber. At the same time, the division pushed higher market prices through. Exchange-rate effects adversely impacted our sales development. WACKER SILICONES generated its highest sales growth rates in Asia, eastern Europe and the Middle East. In contrast, business in the USA and western Europe was subdued.
Sales Rise Due to Higher Demand for Silicone Products
EBITDA was lower than in the previous year. At €167.9 million (2007: €226.9 million), EBITDA was 26.0% down against 2007. Raw material costs were significantly higher than in the prior-year period, particularly for silicon metal. The same applies to energy and transport expenditures. As a result, the EBITDA margin dropped to 11.9% (2007: 16.7%). Having raised prices for all its silicone products from January 1, 2008, the division introduced further price increases on October 1, 2008.
Investments focused on further expanding the Zhangjiagang site in China. Divisional investments totaled €107.0 million (2007: €102.2 million). The first expansion stage of the new siloxane and pyrogenic silica production facilities in Zhangjiagang began operating in November 2008. In partnership with Dow Corning, WACKER is building the world’s largest integrated silicone production site there. Full nominal capacity is expected by year-end 2010. In September 2008, the division started up two new production facilities for silicone polymers and sealants at its Nünchritz (Germany) site, which specializes in silicones. Nünchritz celebrated its 10th anniversary as a WACKER site in October 2008. Over the last 10 years, WACKER has invested more than €550 million to transform Nünchritz into a world-class production site.
WACKER SILICONES had 3,927 employees on December 31, 2008 (December 31, 2007: 3,871).
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Key Data: WACKER SILICONES | |||||
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€ million |
2008 |
2007 |
2006 |
2005 |
2004 |
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Total sales |
1,408.6 |
1,361.0 |
1,286.9 |
1,119.3 |
1,045.4 |
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EBITDA |
167.9 |
226.9 |
231.9 |
211.0 |
189.9 |
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EBIT |
86.3 |
144.6 |
147.8 |
111.5 |
105.8 |
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Capital expenditures |
107.0 |
102.2 |
140.9 |
102.9 |
107.0 |
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R&D expenses |
31.5 |
35.9 |
34.4 |
33.4 |
33.1 |
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Employees (number as of December 31) |
3,927 |
3,871 |
3,767 |
3,596 |
3,596 |
