Wacker Chemie raises 2017 expectations to €1 billion EBITDA

Wacker Chemie, the largest polysilicon producer in the world, posted an EBITDA of €298 million for the third quarter of 2017, 18% higher than the previous quarter, and 13% above the same period in 2016. The company cited increased sales volumes in its polysilicon division, as well as in silicones and polymer products, as the main reasons behind the increase.

The increased volumes, says Wacker, were more than sufficient to compensate for higher raw material prices and negative exchange effects from the stronger Euro.

Wacker Polysilicon, the business division which supplies the solar industry, saw total sales of €341.7 million for Q3, a 35% increase on Q3 2016 (€253 million) and a 39% increase on Q2 2017. This revenue growth, says Wacker, is attributable to sales volume growth, supported by sales from inventory. Q3 EBIDTA for Wacker Polysilicon came in at €85 million, a 3% increase YoY and a 19% increase QonQ.

The division’s EBITDA margin, however, fell to 24.9%, having stood at 28.9% the previous quarter and 32.5% for Q3 2016. Wacker cited product mix and inventory effects as the main dampeners for the EBITDA margin.

“At WACKER, the third quarter was the most successful so far this year,” said Group CEO Rudolf Staudigl. “Demand for silicones and polysilicon was especially strong, with the two divisions posting new volume records. Our robust performance more than compensated for the headwinds from markedly higher raw material prices and a stronger euro. Given the continued strength of business, we are upgrading our forecast.”

The group is now forecasting full year EBITDA for 2017 at €1 billion, with group sales of €1.3 billion.