WACKER SILICONES

Sales at WACKER SILICONES decreased slightly in 2019. At €2.45 billion (2018: €2.50 billion), they were down 1.8 percent year over year. The decline was attributable to lower prices for standard silicones, and to volume and product-mix effects. Changes in exchange rates had a positive impact on the sales trend. In regional terms, WACKER SILICONES lifted its sales slightly in the Americas and Asia, while sales in Europe decreased.

EBITDA also declined year over year. It fell by 22.4 percent to €478.5 million (2018: €616.6 million) due to significantly lower prices for standard silicones. The EBITDA margin was 19.5 percent (2018: 24.7 percent).

Capital expenditures decreased by 13.1 percent year over year to €193.6 million (2018: €222.7 million). Investments focused on new facilities for downstream silicone products at Burghausen (Germany) and Zhangjiagang (China), on constructing a new pyrogenic silica plant at Charleston, Tennessee (USA), and on expanding silicon metal production at Holla (Norway). The facilities in Charleston and Holla came on stream in the second half of 2019. As of December 31, 2019, the division had 5,267 employees (Dec. 31, 2018: 5,114).

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Key Data: WACKER SILICONES

€ million

2019

2018

2017

2016¹

2015

¹	Reclassification of costs from selling expenses to R&D expenses starting in 2016

Total sales

2,453.0

2,499.6

2,200.2

2,001.1

1,943.3

EBITDA

478.5

616.6

444.9

361.2

276.2

EBITDA margin (%)

19.5

24.7

20.2

18.1

14.2

EBIT

375.3

536.7

362.2

280.8

194.5

Capital expenditures

193.6

222.7

142.8

88.6

82.0

R&D expenses

65.0

60.9

58.6

53.7

35.8

Employees (December 31, number)

5,267

5,114

4,737

4,566

4,353

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.

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.