Wacker Chemie releases Q2 results

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Wacker Chemie’s pre-EBITDA earnings in Q2 2015 stands at €329 million (US$360.74 million), an increase of 43% compared to Q2 2014. EBITDA also grew by 23% when compared to Q1 2015 where earnings were $292.87 million. The strong earnings were a result of advanced payments as well as damages that were received by the company.

Wacker Polysilicon

Things were not so rosy for the polysilicon segment. With lower solar silicon prices for Q2 2015 compared to the same quarter last year, Wacker Polysilicon saw its total sales fall 4% to $286.51 million. Relative to Q1 2015, sales were down by almost 10% as a result of lower volumes. Wacker explained the reason as the reduction of inventory levels by many customers, resulting in lesser orders placed for polysilicon.

The polysilicon division managed to cash in a special income of $95.06 million by terminating contractual and delivery relationships with solar sector customers. After taking into account this income, Wacker Chemie’s total EBITDA grew almost 6% YoY. Earnings in Q2 2014 were not influenced by such non-recurring effects. Adjusted for advance payments retained and damages received, Q2 2015 EBITDA at Wacker Polysilicon was 15% below the prior-year level.

The company cites the reasons as the lower polysilicon prices compared to a year ago and the higher start-up costs for its site in Charleston, Tennessee. Despite having ongoing measures to improve efficiency and productivity, the decrease could not be compensated.

Wacker’s polysilicon business is forecasted to grow slightly in 2015 nevertheless, with marginal increases in both volumes and sales. Wacker has stated that it expects the PV market to grow, but with overcapacity along the supply chain. EBITDA is thereby forecasted to decline significantly YoY .

Other segments

Wacker’s other divisions Wacker Silicones, Wacker Polymers, Wacker Biosolutions and its 100% owned subsidiary Siltronic all reported sales increases, with Wacker Silicones generating total sales of $555.14 in Q2 2015. This was the first time the half-a-million threshold was exceeded in a single quarter according to the company.