24 October 2012 06:44 [Source: ICIS news]
SINGAPORE (ICIS)--German chemical firm Wacker Chemie reported on Wednesday a 78.5% year-on-year decline in net profit to €26.9m ($34.9m), as higher earnings in chemicals were offset by weakness in its polysilicon business.
Sales fell by 6.2% to €1.2bn, with operating profit down by 64.1% at €70.7m, it said in a statement.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the September quarter were down 35.7% year on year to €204.3m, it said.
“Sales in the chemical business rose 7%, while [EBITDA] improved by 20% year on year,” Wacker said.
“In contrast, sales and earnings in the polysilicon business decreased significantly because of sustained pressure on prices and high inventory levels in the solar industry,” the company said.
For the first nine months of 2012, the company’s net profit was down 70.7% year on year to €127.5m, with sales falling 7.2% to €3.62bn.
EBITDA for January-September 2012 slipped 33.9% to €656.6m, while operating profit fell 60% to €263.4m, it said.
Wacker said that the economic situation will remain “challenging in the months ahead”.
“The extent to which the world economy will slow remains uncertain. Nevertheless, the Group sees growth prospects, especially for its chemical business, in markets outside Europe,” it said.
The company expects its 2012 sales to be between €4.6bn- €4.7bn, with an EBITDA of about €750m because of price pressure.
($1 = €0.77)
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