Wacker reports further drop for polysilicon prices

In the second quarter of 2017, Wacker Chemie AG was able to increase its turnover. Sales for the period reached €1.21 billion ($1.41 billion). This is up 2% from the same period a year earlier. The company said that this slight increase in revenue was the result of higher sales for silicone and polymer products.

Ebitda for the quarter was €253.4 million, down 4% from the second quarter of last year. The company, however, has raised its Ebitda forecast for this year and said it now expects a result between €900 million and €935 million, which corresponds to the EBITDA of the previous year adjusted for special in-come. Wacker specified it had previously expected adjusted EBITDA to decline by a mid-single-digit percentage.

The polysilicon business of Wacker Chemie achieved a turnover of €246.7 million. It is a 9% decline compared to the previous year and 8% up from the previous quarter. Lower silicon prices were the main reason, the company said, as the volume of sales rose appreciably. The Division’s EBITDA reached  €71.3 million, a decrease of 8% compared to the same period of the previous year, but slightly higher than in the previous quarter.

“Alongside lower polysilicon prices,” Wacker stated, “the division’s Ebitda was influenced not only by last year’s special income from advance payments retained and damages received from solar-sector customers, but also by cost developments, including the start-up of the Charleston site, and by product-mix effects. Compared with the preceding quarter, the division made up for the decline in polysilicon prices by achieving cost reductions with the help of productivity-enhancing measures and technical improvements.”