MUNICH - Wacker Chemie AG ended fiscal 2014 with increases in both sales and earnings. The Munich-based chemical company announced that group sales totaled €4.83 billion, compared to €4.48 billion in 2013, a year-on-year rise of about 8%. This increase was mainly due to higher volumes across all divisions and improved polysilicon prices. Earnings before interest, taxes, depreciation and amortization (EBITDA) in 2014 amounted to €1,042.3 million, compared to €678.8 million in 2013, almost 54% more than a year earlier. The EBITDA margin rose significantly, from 15.2% to 21.6%.
There are several reasons for this jump in earnings. Last year, WACKER achieved higher prices overall - primarily for polysilicon, but also in several chemical-business segments. Productivity programs, measures to curb specific energy consumption and higher production volumes have reduced group costs by around €200 million. At Siltronic, the first-time consolidation of Siltronic Silicon Wafer Pte. Ltd. had a positive effect. WACKER POLYSILICON terminated or restructured contractual relationships with a number of solar-industry customers. In this connection, the division retained advance payments and received damages. That resulted in income of €206.3 million (2013: €77.6 million). Adjusted for this effect, group EBITDA in 2014 was €836.0 million (adjusted 2013: €601.1 million), rising 39% and yielding an EBITDA margin of 17.3%.