MOSCOW (MRC) -- Following a generally robust fourth quarter, Wacker Chemie AG achieved its sales target for full-year 2015 and slightly exceeded its earnings expectations, as per the company's press release.
According to preliminary calculations, the Munich-based chemical group posted total sales of EUR5.3 billion in 2015 (2014: EUR4.83 billion), some 10% above the 2014 figure. This increase was chiefly the result of higher volumes and favorable exchange-rate effects. Every division generated year-over-year sales growth in 2015.
The group’s preliminary earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR1.04 billion (2014: EUR1.04 billion). EBITDA was at the prior-year level despite substantially lower special income from advance payments retained and damages received from solar-sector customers. In full-year 2015, these special-income items amounted to some EUR137 million (2014: EUR206 million). Adjusted for this effect, EBITDA increased by 9% in the reporting year. The group’s earnings before interest and taxes (EBIT) grew by 6% year over year to EUR470 million in 2015 (2014: EUR443 million). Wacker’s preliminary net income for 2015 reached EUR240 million (2014: EUR195 million).
"Our chemical business in particular performed well in the fourth quarter," said Group CEO Rudolf Staudigl on Tuesday in Munich. "Chemical sales were substantially higher than in the comparable final-year quarter. This more than compensated for the fact that polysilicon prices were lower and semiconductor-wafer volumes were down slightly year over year. On the whole, we generated the strongest final-quarter sales to date".
Net cash flow for the group was slightly positive, as forecast, although declining significantly year over year. It amounted to EUR20 million (2014: EUR216 million). The main reasons for this decrease were substantially higher investment spending and lower cash inflows from damages received from solar customers. Group net financial debt was at the prior-year level, as expected. It amounted to about EUR1.07 billion as of December 31, 2015 (Dec. 31, 2014: EUR1.08 billion).
As MRC wrote previously, in 2013, Wacker Chemie AG officially launched its new production plant for ethylene-vinyl-acetate copolymer (EVA) dispersions at its Ulsan site in South Korea. The additional 40,000 tonnes from the second reactor line increased the site's EVA-dispersion capacity to a total of 90,000 tonnes per year. The production capacity of the site has, thus, almost doubled, making the plant complex one of the biggest of its kind in South Korea.
Wacker Chemie AG is a worldwide operating company in the chemical business, founded 1914. The company is controlled by the Wacker-family holding more than 50 percent of the shares. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry.