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Wacker Neuson reports record revenue in Q1 2017

May 18/2017

MOSCOW (MRC) -- German Wacker Chemie AG posted sales of EUR1,218.8 million (USD1,328 million) in the reporting quarter (Q1 2016: EUR1,133.1 million), said the company on its website.

This is an increase of around 8 percent, mainly due to higher volumes of silicones and polymer products. Earnings before interest, taxes, depreciation and amortization (EBITDA) were EUR229.3 million (USD250 million). That was 12 percent higher than a year ago (EUR205.3 million). Net income in the reporting quarter was strongly influenced by the deconsolidation of Siltronic as a Wacker Group segment and amounted to EUR665.9 million (USD726 million) compared to Q1 2016 (EUR16.1 million).

According to Wackers CEO Rudolf Staudigl, demand for silicones and polymers remains strong. Market conditions for polysilicon business were more difficult. Spot-market prices for solar silicon have declined significantly. Generally, though, we anticipate further growth in the global photovoltaic market this year, which will have a positive impact on polysilicon demand.

Wacker polysilicon generated total sales of EUR268.1 million (USD292 million) in the reporting quarter, 2 percent lower than a year ago (EUR273.1 million) and 10 percent less than in the preceding quarter (EUR297.2 million).

According to the company, the slight year-over-year decline was prompted mainly by somewhat lower volumes in the solar business. On the other hand, higher solar-silicon prices both year over year and quarter over quarter supported sales. Volumes fell substantially compared with Q4 2016.

The division made use of this situation to increase its inventory levels in Asia and thus considerably shorten delivery times to its customers in the region.

EBITDA amounted to EUR70.5 million, up 79 percent versus a year ago (EUR39.4 million). This strong increase was primarily due to the costs incurred last year to commission the new polysilicon plant in Charleston, Tennessee (USA). In Q1 2016, these costs had lowered the divisions EBITDA by around EUR30 million. Relative to a quarter ago (EUR86.5 million), EBITDA was down by almost 19 percent.

Group sales in 2017 are still expected to increase by a mid-single-digit percentage relative to last year (EUR4,634.2 million).
Author:Anna Larionova
Tags:petroleum products, petrochemistry, Wacker, Germany.
Category:General News
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