WACKER SILICONES

Sales Grow 3.4 Percent to over €1.6 Billion

In 2012, WACKER SILICONES increased its sales by 3.4 percent to €1.65 billion (2011: €1.59 billion). Higher volumes and positive exchange-rate effects offset the price pressure on silicone products. All the division’s business areas – apart from construction – generated sales growth. Silicone volumes were especially strong for personal-care products, the textile sector and paper coating. At the regional level, WACKER SILICONES expanded its sales in Asia, particularly Southeast Asia and China, by more than 13 percent. The Americas also delivered double-digit sales growth, with increases in the “Other Regions,” as well. Amid the sovereign-debt crisis, European and German sales declined – down by 3.7 percent in Europe and 4 percent in Germany.

EBITDA edged higher year over year. It came in at €189.3 million, up 3.5 percent (2011: €182.9 million). Raw-material and energy costs remained high overall, although pricing factors did not cause them to rise again relative to the previous year. The average price for silicon metal was 6 percent lower than in 2011, while the price for methanol increased 7 percent. Price pressure, especially on standard products, dampened the division’s sales performance. Conversely, the stronger US dollar supported earnings. At 11.5 percent, the EBITDA margin remained at the prior-year level.

Investments above Prior-Year Level

Capital expenditures were higher than a year earlier, climbing from €106.3 million to €158.8 million. They included capital contributions to our associated company with Dow Corning (Zhangjiagang), which were agreed for restructuring its financing via shareholder loans. Investments in property, plant and equipment were used to increase capacity at existing facilities and to expand downstream and specialty-product capacities.

WACKER SILICONES had 3,960 employees on December 31, 2012 (December 31, 2011: 3,956).