Wacker Chemie AG profited from higher customer demand in Q2 2009. The global economic crisis did, however, continue to impact the Munich-based chemical company’s performance in the reporting period. Sales totaled 925.5 million Euro (Q2 2008: 1,233.0 million Euro) – down 18 percent on the prior-year period. Compared to Q1 2009 (872.5 million Euro), sales nevertheless rose 6 percent. This quarter-on-quarter gain was fueled by higher sales volumes at all divisions. Lower prices, though, burdened sales growth.
Factors that helped stabilize earnings in Q2 2009 were personnel and material cost savings, and lower year-on-year prices for ethylene and methanol, two key raw materials. On the other hand, production capacity utilization remained low in many areas and weighed on profitability. Second-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to 170.1 million Euro (Q2 2008: 317.9 million Euro) – 47 percent below the strong prior-year value, but 8 percent up against Q1 2009 (157.8 million Euro). EBITDA includes provisions of 15 million Euro for the planned job cuts at Siltronic and Wacker Silicones. This special effect burdened the earnings trend. The EBITDA margin reached 18.4 percent (Q2 2008: 28.3 percent), following 18.1 percent in Q1 2009.
Earnings before interest and taxes (EBIT) dropped to -53.7 million Euro (Q2 2008: 224.9 million Euro). The key factor behind the above-average EBIT decline were impairment losses of 121.3 million Euro on Siltronic’s fixed assets. This impairment takes account of plans to concentrate Siltronic’s wafer production at lead sites and the expected semiconductor-market development. Adjusted for this special item and the provisions for job cuts, Q2 2009 EBIT would have been 82.6 million Euro, up 42 percent compared to the first three months of 2009. The Q2 result was -74.5 million (Q2 2008: 152.6 million Euro) and earnings per share were -1.47 Euro (Q2 2008: 3.08 Euro).
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