Home / Knowledge / News / Textiles / WACKER Polysilicon business remains on a growth course
WACKER Polysilicon business remains on a growth course
06
Aug '09
Wacker Chemie AG profited from higher customer demand in Q2 2009. The global economic crisis did, however, continue to impact the Munich-based chemical company's performance in the reporting period. Sales totaled €925.5 million (Q2 2008: €1,123.0m) – down 18 percent on the prior-year period. Compared to Q1 2009 (€872.5m), sales nevertheless rose 6 percent. This quarter-on-quarter gain was fueled by higher sales volumes at all divisions. Lower prices, though, burdened sales growth.

Factors that helped stabilize earnings in Q2 2009 were personnel and material cost savings, and lower year-on-year prices for ethylene and methanol, two key raw materials. On the other hand, production capacity utilization remained low in many areas and weighed on profitability. Second-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to €170.1 million (Q2 2008: €317.9m) – 47 percent below the strong prior-year value, but 8 percent up against Q1 2009 (€157.8m). Second-quarter EBITDA includes provisions of €15 million for the planned job cuts at Siltronic and WACKER SILICONES. This special effect burdened the earnings trend. The EBITDA margin reached 18.4 percent (Q2 2008: 28.3 percent), following 18.1 percent in Q1 2009.

Earnings before interest and taxes (EBIT) dropped to €-53.7 million (Q2 2008: €224.9m). The key factor behind the above-average EBIT decline were impairment losses of €121.3 million on Siltronic's fixed assets. This impairment takes account of plans to concentrate Siltronic's wafer production at lead sites and the expected semiconductor-market development. Adjusted for this special item and the provisions for job cuts, Q2 2009 EBIT would have been €82.6 million, up 42 percent compared to the first three months of 2009. The Q2 result was €-74.5 million (Q2 2008: €152.6m) and earnings per share were €-1.47 (Q2 2008: €3.08).

The Group's polysilicon business made the largest contribution to Q2 2009 earnings. WACKER POLYSILICON's EBITDA climbed 30 percent year-on-year to €136.0 million (Q2 2008: €104.8m). Although sales were lower than in Q1 2009, the EBITDA margin was once again over 50 percent. The other divisions improved their operational results compared to the first quarter.

For full-year 2009, WACKER still expects significantly lower sales and operational results than in the prior year. Although economic forecasts increasingly predict that global output will slowly stabilize, customers remain very cautious about placing orders. Due to the current business environment, they are ordering smaller quantities or concluding contracts with shorter durations. This is why it is difficult to say to what degree Q2's stronger customer demand will continue during the rest of the year.

“In several of WACKER's key customer sectors, demand picked up somewhat,” said CEO Rudolf Staudigl in Munich this Thursday. “At the moment, though, it's impossible to estimate just how long this recovery limited so far to sales volumes will last. That's why we are continuing to improve our cost structures and optimize our processes and resource allocations. Such steps help us stabilize earnings.”


Must ReadView All

Textiles | On 20th Sep 2017

India needs to double cotton farmers’ income: top official

India needs to double the income of cotton farmers and non-farmers...

Textiles | On 20th Sep 2017

Pakistan seeks more JVs with China: textile minister

The Pakistani Government wants to forge more joint ventures (JVs)...

Apparel/Garments | On 20th Sep 2017

Egypt’s garment exports touch $941 million in 8 months

Egypt's garment exports touched $941 million in the first eight...

Interviews View All

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search