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WACKER´s growth continues in Q1 2007

Geschrieben am 08-05-2007

- Q1 GROUP SALES RISE 18 PERCENT TO €944 MILLION - EBITDA JUMPS 45
PERCENT TO €266 MILLION, EBITDA MARGIN CLIMBS TO 28 PERCENT -
CUSTOMER PREPAYMENTS BOOST NET CASH FLOW TO €224 MILLION - Q1
EARNINGS PER SHARE REACH €2.30 - STRONG RESULTS FOR 2007 EXPECTED


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ots.CorporateNews transmitted by euro adhoc. The issuer is responsible for
the content of this announcement.
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balance

Munich (euro adhoc) - May 8, 2007 - Wacker Chemie AG remained on
course for growth in Q1 2007. With the positive economic trend set to
continue, the Munich-based chemical company has substantially
expanded its manufacturing output and sales volumes. Q1 Group sales
accordingly rose 18 percent to EUR943.7 million (Q1 2006: EUR798.5
million). Driven by operational strength across all five divisions,
WACKER has again seen its year-on-year earnings growth greatly
outstrip sales gains. From January to March 2007, the Group generated
Earnings before Interest, Tax, Depreciations and Amortization
(EBITDA) of EUR265.5 million (EUR183.6m) - up 45 percent against the
prior-year period. This yielded an EBITDA margin of 28.1 percent (23
percent). Semiconductor segment strength was a major factor in this
earnings increase. Siltronic improved its year-on-year EBITDA by
EUR61.1 million, nearly doubling earnings. WACKER POLYMERS profited
from strong construction-industry demand thanks to the recent mild
winter. Its EBITDA rose 44 percent against Q1 2006. WACKER
POLYSILICON, too, posted a higher EBITDA - up 8 percent, mainly due
to higher volumes and prices. Sales of hyperpure polycrystalline
silicon grew 35 percent. The Group´s Q1 2007 Earnings before Interest
and Tax (EBIT) surged to EUR187.9 million (EUR105.7m), with
year-on-year net income for the period climbing 73 percent to
EUR114.5 million (EUR66.2m). As a result, Q1 earnings per share are
EUR2.30 (EUR1.49). WACKER expects its sales and earnings performance
to remain positive during the rest of 2007. Based on current exchange
rates, the Group estimates its sales growth in fiscal 2007 to exceed
10 percent, with a higher EBITDA margin than last year.

"Our sales and earnings growth is mainly driven by strong volume
gains and a positive pricing environment for many of our key
products," CEO Peter-Alexander Wacker said. "Our high capacity
utilization reflects continued firmness in customer demand. Capacity
expansions resulting from our strategic investment projects are
supporting WACKER´s further growth."

With Q1 sales of EUR291.7 million (EUR217.8m) and a 34 percent growth
rate, Asia is the largest regional contributor to WACKER Group sales.
China has again been particularly dynamic. In the Americas, WACKER
logged Q1 sales of EUR176.5 million (EUR173.9m), a gain of 1 percent
amid dollar weakness and the generally more hesitant U.S. economy.
Europe (excluding Germany) produced consolidated sales of EUR265.8
million (EUR232.5m), a year-on-year rise of 14 percent. Central and
Eastern Europe experienced well-above-average growth. WACKER´s Q1
sales in Germany grew 18 percent, climbing from the prior-year figure
of EUR152.7 million to EUR180.2 million. In the rest of the world,
the Group registered January to March revenues of EUR29.5 million
(EUR21.6m) - a year-on-year increase of 37 percent. Mideast sales
growth was especially strong.

In Q1 2007, the Group´s net cash flow hit a new record: EUR224.2
million against the prior-year figure of EUR22.7 million. This is a
gain of over EUR200 million compared to Q1 2006. The main impulses
fueling this strong performance were the success of WACKER´s business
operations as well as EUR104.8 million in customer prepayments for
future polysilicon deliveries.

From January to March 2007, investments in intangible assets,
property, plant, equipment, and financial assets amounted to EUR91.0
million (EUR76.3m). WACKER´s Q1 investment activities focused on
several major projects: Production capacity for hyperpure
polycrystalline silicon is being boosted at the Group´s Burghausen
(Germany) site. Expansion work continues at the silicone production
site in Zhangjiagang (China). In Singapore, construction of a new 300
mm wafer fab - a joint venture between Siltronic and its customer
Samsung Electronics - has made substantial progress, too. And a new
dispersible polymer powder production plant, scheduled to come on
stream this year, is currently being built in Burghausen.

On March 31, 2007, WACKER had 14,788 employees worldwide, a slight
rise compared to the preceding quarter (Dec. 31, 2006: 14,668).

Business Divisions In Q1 2007, WACKER SILICONES boosted its total
sales by 8 percent to EUR348 million (EUR323m). This growth was
largely due to volume gains, especially at the new siloxane
production facility in Nünchritz (Germany), which went on stream in
late 2006. WACKER SILICONES posted a Q1 EBITDA of EUR64.3 million,
essentially on par with the prior-year figure of EUR64.8 million.
Positive volume effects were offset by the significantly higher cost
of raw materials, such as methanol and silicon, and the impact of the
weakened U.S. dollar.

Business at WACKER POLYMERS progressed extremely well during the
first quarter of 2007. Demand for dispersible polymer powders
remained very high, due to the continuing construction-sector upswing
and not least because of an unusually mild winter. Altogether, WACKER
POLYMERS generated total sales of EUR148.7 million (EUR121.4m) - a 22
percent gain against the prior-year figure. Although higher
raw-material costs and exchange-rate effects weighed on business
results, this was successfully offset by volume gains and higher
prices that took effect since the beginning of 2007. WACKER POLYMERS
boosted EBITDA by 44 percent to EUR34.2 million (EUR23.7m).

Q1 sales at WACKER FINE CHEMICALS climbed 4 percent, rising from the
prior year´s EUR33.5 million to EUR35.0 million. In the period under
review, EBITDA was EUR3.6 million (EUR5.8m) - down 38 percent on the
prior-year figure. Dollar weakness, increasing cost pressure by Asian
competitors and a less favorable product mix in the organic fine
chemicals segment all left their mark. To counter this situation,
WACKER FINE CHEMICALS is increasingly focusing its portfolio and
accordingly consolidating custom synthesis activities. In contrast,
the division´s biotech products continued to perform well.

Business at WACKER POLYSILICON remains very robust, with sales of
hyperpure polycrystalline silicon growing 35 percent. The increase
was mainly due to higher prices as well as volume gains enabled by
productivity improvements and the "Poly 4" polysilicon production
plant (commissioned in late 2006 with an annual capacity of 1,000
metric tons). Polysilicon production is running at full capacity.
Dampened by low sales of road salt, total divisional sales rose 8
percent to EUR92.2 million (EUR85.5m). WACKER POLYSILICON´s Q1 EBITDA
was EUR33.5 million (EUR30.9m) - an 8 percent gain compared with the
prior-year figure. Price increases were countered by rising energy
costs.

Once again in Q1, Siltronic considerably boosted sales, which totaled
EUR377.3 million (EUR286.4m) - up 32 percent against the prior-year
period. Siltronic´s Q1 EBITDA shot up 88 percent to EUR130.4 million
(EUR69.3m). This yielded an EBITDA margin of 34.6 percent, fueled
mainly by productivity gains, an enhanced product mix focused on the
300 mm wafer segment, and especially price effects.

Outlook In view of the global economy´s upbeat perspectives and
WACKER´s own appraisal of demand trends, the Group expects sales and
earnings performance to remain positive during the rest of 2007.
WACKER´s current efforts to expand production capacities are
positioning the Group well to meet increasing demand for its products
- especially at WACKER SILICONES, WACKER POLYMERS, WACKER POLYSILICON
and Siltronic. Based on current exchange rates, the Group expects its
full-year sales growth to exceed 10 percent, with a higher EBITDA
margin than last year.

Key Group Figures


|EUR million |Q1 2007 |Q1 2006 |% |
| | | |change |
|Sales |943.7 |798.5 |18 |
|EBITDA(1) |265.5 |183.6 |45 |
|EBITDA margin(2) |28.1% |23.0% |22 |
|EBIT(3) |187.9 |105.7 |78 |
|EBIT margin(2) |19.9% |13.2% |51 |
| | | | |
|Financial result |-5.4 |-11.0 |-51 |
|Income before taxes |182.5 |94.7 |93 |
|Net income |114.5 |66.2 |73 |
| | | | |
|Earnings per share in EUR |2.30 |1,49 |54 |
| | | | |
|Capital expenditures (incl. |91.0 |76.3 |19 |
|financial assets) | | | |
|Net cash flow |224.2 |22.7 |>100 |
| | | | |
|EUR million | March | March 31, | Dec. 31, |
| |31, 2007 |2006 |2006 |
|Equity |1,699.4 |930.7 |1,585.8 |
|Financial liabilities |300.2 |990.6 |409.9 |
|Provisions for pensions |359.2 |355.3 |354.8 |
|Net financial liabilities |142.6 |954.1 |367.0 |
|Total assets |3,457.8 |3,019.8 |3,258.2 |
| | | | |
|Employees (number at end of |14,788 |14,520 |14,668 |
|period) | | | |
| | | | |

(1) EBITDA is EBIT before depreciation and amortization.
(2) Margins are calculated based on sales.
(3) EBIT is the result from continuing operations for the period before interest
and other financial results, limited partnership interests and income taxes.


This press release contains forward-looking statements based on
assumptions and estimates of WACKER´s Executive Board. Although we
assume the expectations in these forward-looking statements are
realistic, we cannot guarantee they will prove to be correct. The
assumptions may harbor risks and uncertainties that may cause the
actual figures to differ considerably from the forward-looking
statements. Factors that may cause such discrepancies include, among
other things, changes in the economic and business environment,
variations in exchange and interest rates, the introduction of
competing products, lack of acceptance for new products or services,
and changes in corporate strategy. WACKER does not plan to update the
forward-looking statements, nor does it assume the obligation to do
so.


end of announcement euro adhoc 08.05.2007 07:30:41
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ots Originaltext: Wacker Chemie AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Christof Bachmair
Media Relations & Information
Tel.: +49 (0)89 6279 1830
E-Mail: christof.bachmair@wacker.com

Branche: Chemicals
ISIN: DE000WCH8881
WKN: WCH888
Index: CDAX, Classic All Share, HDAX, MDAX, Midcap Market Index,
Prime All Share
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard


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