Sales Grow 1.5 Percent

In 2013, WACKER SILICONES increased its sales by 1.5 percent to € 1.67 billion (2012: € 1.65 billion). The increase was mainly the result of higher volumes. Factors dampening sales momentum were lower prices for standard products and unfavorable exchange-rate effects due to the stronger euro. However, every sector of our silicones business generated higher sales. Silicone volumes were especially strong for personal-care products, industrial applications and medical technology. At the regional level, WACKER SILICONES increased its sales in Asia by 4.9 percent. In Europe, the rise was 3.6 percent despite its weak economy. The “Other regions” delivered double-digit growth. Sales in the Americas stayed at the prior-year level. In Germany, sales declined by 2.7 percent.

Compared with the previous year, EBITDA outpaced sales growth. It came in at € 230.2 million, up 21.6 percent (2012: € 189.3 million). The use of provisions that were set up in the past for contingent losses from future purchase obligations from the joint venture with Dow Corning in China had a positive impact of € 13.7 million on EBITDA. Raw-material and energy costs were somewhat higher overall than a year earlier. The average price for silicon metal was 8 percent down year on year, while the price for methanol climbed 3 percent. Higher utilization of capacity resulted in better fixed-cost coverage in production. On the other hand, price pressure, especially on standard products, and exchange-rate effects dampened the division’s earnings performance. The EBITDA margin rose to 13.8 percent (2012: 11.5 percent).

Investments Lower than Prior Year

Investments were considerably lower year on year. They came in at € 85.4 million (2012: € 158.8 million). That is 46.2 percent less than a year earlier. The prior year’s figure contained a loan of € 87.9 million to the joint venture with Dow Corning. Capital expenditures in the year under review focused primarily on expanding capacities for downstream silicone products.

Continued Expansion of Sales Structures in Asia

To better meet the needs of Asian customers and to intensify market activities, five new business teams have been active in the region since March 2013. They are geared to providing customer support locally from WACKER sites in Singapore, Mumbai (India), Jincheon (South Korea) and Shanghai (China). Each of these teams utilizes not only local sales structures, but also region-specific technical competence centers. Here, products are adapted to local raw materials and customer specifications. WACKER SILICONES had 4,109 employees on December 31, 2013 (Dec. 31, 2012: 3,960).

Key Data: WACKER SILICONES