Wacker Chemie forecasts substantial sales and earnings gains for the current year. The Munich-based chemical company reported Wednesday that the upturn recently seen in its business fields is ongoing. After the global economic crisis sent customer demand plummeting in early 2009, sales volumes steadily recovered during the rest of the year. However, they did not attain 2008's level. The volume decline - coupled with lower prices - brought consolidated sales down 14% to €3.72 billion in 2009 (2008: €4.30 billion).

Earnings fell even further. 2009's earnings before interest, taxes, depreciation and amortization (Ebitda) decreased to €607 million (2008: €1.06 billion). The main cause was the weak trend in the group's semiconductor segment, where Ebitda dropped €520 million against 2008. Additionally, non-recurring charges reduced the company's Ebitda by €160 million. These charges comprise investment expenses due to exiting the solar-wafer business, an addition to pension provisions, and provisions for additional phased-early-retirement quotas, for working-life accounts and for personnel measures at Wacker Silicones and Siltronic. Moreover, earnings before interest and taxes (Ebit) were impacted by fixed-asset impairments totaling €176 million. Overall, Wacker's net result for the year fell to €-75 million (2008: €438 million).

In the first two months of 2010, every division reported continuing sales-volume gains. In January and February, consolidated Group sales were higher compared both to the prior-year period and to the monthly average in Q4 2009. Provided that the rebound continues during the rest of the year, Wacker predicts that 2010's sales will cross the €4 billion mark. Net income for the year, according to the latest forecasts, is expected to be substantially positive.

"Wacker reported a sound operating performance for 2009 and has resumed a growth trajectory," said group CEO Rudolf Staudigl on Wednesday in Munich. "Adjusted for non-recurring charges, we generated good Ebitda figures in every division apart from Siltronic. The demand recovery benefits not only our chemical divisions, but also our semiconductor activities. In our polysilicon segment, demand remains consistently high and we can sell our entire output on the market at attractive prices. Our group's financial condition remains extremely good and the global trends that drive product demand are unchanged. All these are fundamental factors to generate substantial sales and earnings growth this year."