Home / Knowledge / News / Textiles / Price declines reduce Q1 EBITDA of Wacker Chemie
Price declines reduce Q1 EBITDA of Wacker Chemie
07
May '12
After last year's weak fourth quarter, Wacker Chemie AG recorded higher volumes amid rising demand in the first quarter of 2012. The Munich-based chemical company's sales and earnings both showed a marked improvement over Q4 2011. The very strong figures for the prior-year's first quarter could not be matched, however.

The Group generated first-quarter sales of €1,194.3 million, down 8 percent from Q1 2011 (€1,291.7 million), but up 18 percent on Q4 2011 (€1,011.6 million). Sales at the Group were driven mainly by higher volumes in the quarter under review. In contrast, significantly lower prices held back sales, particularly in the solar-silicon business, but also in the area of semiconductor wafers. Changes in exchange rates were only of minor importance.

Lower solar-silicon margins and non-recurring effects impacted WACKER's profitability in the first quarter of 2012. The Group generated earnings before interest, taxes, depreciation and amortization (EBITDA) of €211.8 million in the period under review – down 40 percent from a year ago (€351.0 million). Compared with Q4 2011 (€110.8 million), however, the Group almost doubled its EBITDA. The EBITDA margin in the period reached 17.7 percent (Q1 2011: 27.2 percent).

The Group's first-quarter earnings before interest and taxes (EBIT) amounted to €82.4 million (Q1 2011: €245.9 million), which corresponds to an EBIT margin of 6.9 percent (Q1 2011: 19.0 percent). In the fourth quarter of 2011, EBIT had been €-55.0 million. Net income for the period was €40.0 million (Q1 2011: €168.0 million), which represents earnings per share of €0.84 (Q1 2011: €3.39).

Aside from the effect of lower prices on revenues, the continued high cost of raw materials and energy was also a key factor holding back earnings in the quarter. At Siltronic, non-recurring expenses relating primarily to the announced closure of the 150 mm wafer production line at Portland reduced EBITDA by some €15 million. Furthermore, higher depreciation resulting from additions to noncurrent assets also had a part in reducing both EBIT and net income for the period. The new polysilicon plant at Nünchritz was one of the contributing factors here. During the quarter, WACKER POLYSILICON received around €37 million in advance payments and damages from polysilicon customers exiting the solar business. This had a positive effect on earnings.

For full-year 2012, WACKER's forecast for Group sales remains unchanged at approximately €5 billion. EBITDA for fiscal 2012 is expected to be well below the previous year's figure of €1.1 billion.

“In view of the general situation, WACKER saw a good start into fiscal 2012,” said CEO Rudolf Staudigl on Friday in Munich. “Encouragingly, customer demand gained appreciable momentum in many business segments during the first quarter of 2012. Although the general economic environment remains challenging, especially in the first half of the year, it seems that the downward trend has now come to an end – a reassuring signal for the months ahead.”

Click here to read more details:

Wacker Chemie AG


Must ReadView All

US commerce department finds dumping of low melt PSF

Textiles | On 20th Jun 2018

US commerce department finds dumping of low melt PSF

The US department of commerce (USDC) has announced affirmative final...

Courtesy: Aditya Birla

Textiles | On 20th Jun 2018

'Growth of VSF yarn industry is difficult'

Growth for the viscose filament yarn (VSF) yarn industry is...

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Apparel/Garments | On 20th Jun 2018

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Italian company Eurojersey Spa will present in 2019 new embossing...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Urmil Arya

Sushila International, a well established textile organisation established ...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search