Germany's Wacker posts double-digit Q4 earnings growth

07 February 2013 07:25  [Source: ICIS news]

Wacker Chemie Headquarter in Munich.SINGAPORE (ICIS)--Wacker Chemie reported a double-digit growth in its fourth-quarter 2012 earnings as sales rose marginally to $1.02bn (€755m) from $1.01bn in the same period a year earlier, the German chemical group said on Thursday.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 17% year on year to $130m in October-December 2012, it said in a statement outlining its preliminary financial results for the period.

The company will publish its full fourth-quarter and annual financial earnings report on 14 March this year.

The company’s chemicals division posted a 6.77% increase in sales to €647m in the fourth quarter, with EBITDA surging by 83.3% to €44m.

“We are pleased with our chemical divisions’ performance last year, especially in polymer products,” said CEO Rudolf Staudigl.

For the full-year, Wacker’s net income fell 69.9% year on year to €107m, while its EBITDA was down by 29% at €787m.

The company’s sales fell by 5.7% year on year to €4.63bn in 2012, weighed mainly by the lower prices of polysilicon and semiconductor wafers.

“The earnings decline is mostly due to the overcapacities affecting the photovoltaic industry. Solar-silicon prices halved over the last 12 months,” the company said.

Meanwhile, the chemical division’s sales rose by 5% in 2012, with “higher volumes and positive exchange-rate effects offsetting the impact of price competition”, it added.

“During the first four weeks of 2013, there have been no improvements in the conditions underlying semiconductor-wafer business,” Wacker said.

“Taking into account the normal seasonal effects occurring in their business during the winter months, Wacker’s chemical divisions are reporting continued strong demand,” it added.

($1 = €0.74)

By: Nurluqman Suratman

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