Munich-based polysilicon producer Wacker Chemie has increased its sales on a YoY and QoQ basis in Q2, as published in its interim quarterly report released yesterday. Higher sales volumes are expected to result in 2016 revenues of 1.39 billion ($1.55 billion).
Wacker reports declining prices for both polysilicon and semiconductor wafers. However, the company was able to offset this with an increased sales volume. Based on this, and higher silicon prices, Wacker forecasts a profit increase of 5% in 2016 on YoY basis.
An EBITA result in Q2 came in at 300 million ($335 million), the company reports. This represents a 9% reduction YoY but a 31% increase on Q1 2016. The YoY revenue decrease was attributed to some take-or-pay polysilicon contracts being terminated in Q2 2015, resulting in payments of 86.7 million ($96.8 million). This year, Wacker recognized only 7 million ($7.8 million) in such one-off payments.
In presenting its Q2 2016 results, Wacker also locked in its full year EBITA forecast. Excluding one-off events such as contract termination payments with PV customers, Wacker expects profits to come in around 5% to 10% higher than in 2015. Based on 2016 results to date, Wacker expects its earnings to come in at the top end of this range. 2016 revenues are projected to increase YoY by a low single digit percentage.
Year-to-date highlights for Wacker include the opening of a new polysilicon facility in Tennesee. Construction of the U.S. facility was completed in Q2, and commissioning took place, as scheduled, during April and June.
Wacker's polysilicon division achieved revenues of 272.2 million ($304 millioin) in Q2, up around 4% YoY. Sales volume on a QoQ basis resulted in a slight decline, as it was limited by available inventory. The polysilicon division returned an EBITA result of 77 million ($86 million) in Q2, doubling that of the previous quarter. This increase, Wacker said, was due to costs incurred during the startup of the Tennessee facility.
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