WACKER SILICONES

WACKER SILICONES generated substantial sales growth in 2018. Sales climbed 13.6 percent to €2.50 billion (2017: €2.20 billion). The main factors were markedly higher volumes for specialty products – coupled with a correspondingly better product mix – and higher prices. Many different market segments spurred this growth, including electronics, construction and medical technology. WACKER SILICONES posted robust sales gains in all of its three main regions: Europe, the Americas and Asia.

EBITDA outpaced sales growth year over year, rising by 38.6 percent to €616.6 million (2017: €444.9 million). It was driven by strong volume growth, higher prices and high plant utilization rates. The EBITDA margin was 24.7 percent, considerably higher than a year earlier (2017: 20.2 percent).

Capital expenditures climbed by 56.0 percent year over year to €222.7 million (2017: €142.8 million). The main investment projects were the construction of a new pyrogenic silica plant at Charleston (USA), the expansion of silicon-metal production at Holla (Norway), and new facilities for downstream silicone products at Burghausen (Germany) and Zhangjiagang (China). As of December 31, 2018, the division had 5,114 employees (Dec. 31, 2017: 4,737).

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Key Data: WACKER SILICONES

€ million

2018

2017

2016¹

2015

2014

¹	Costs from selling expenses reclassified to R&D expenses as of 2016

Total sales

2,499.6

2,200.2

2,001.1

1,943.3

1,733.6

EBITDA

616.6

444.9

361.2

276.2

209.8

EBITDA margin (%)

24.7

20.2

18.1

14.2

12.1

EBIT

536.7

362.2

280.8

194.5

128.9

Capital expenditures

222.7

142.8

88.6

82.0

88.5

R&D expenses

60.9

58.6

53.7

35.8

39.5

Employees (December 31, number)

5,114

4,737

4,566

4,353

4,240

EBITDA

Earnings before interest, taxes, depreciation and amortization.

Silica, Pyrogenic

White, synthetic, amorphous silicon dioxide (SiO₂) in powder form, made by flame hydrolysis of silicon compounds. Variously used as an additive for silicone rubber grades, sealants, surface coatings, pharmaceuticals and cosmetics.

Silicon

After oxygen, silicon is the most common element in the earth’s crust. In nature, it occurs without exception in the form of compounds, chiefly silicon dioxide and silicates. Silicon is obtained through energy-intensive reaction of quartz sand with carbon and is the most important raw material in the electronics industry.

Silicones

General term used to describe compounds of organic molecules and silicon. According to their areas of application, silicones can be classified as fluids, resins or rubber grades. Silicones are characterized by a myriad of outstanding properties. Typical areas of application include construction, the electrical and electronics industries, shipping and transportation, textiles and paper coatings.