Wacker Q3 2017 sales up 14% to €1.31 billion

For the reported period, group sales continued to climb in every region except for the Americas, where sales of €207.0 million were 1 per cent lower year over year (Q3 2016: €208.8 million) due to currency-exchange effects. Asia posted the biggest increase, with sales up 29 per cent to €536.4 million (Q3 2016: €416.4 million). In Europe, sales of €511.5 million were 7 per cent higher year over year (Q3 2016: €476.3 million).

The company's net income for the reported period was recorded at €104 million and the net cash flow stood at €205 million. In Q3 2017, the group’s capital expenditures amounted to €74.9 million (Q3 2016: €76.6 million), a decline of 2 per cent. Investments went primarily toward expanding capacity for silicone and polymer products. Net cash flow from continuing operations amounted to €205.3 million in Q3 2017 (Q3 2016: €208.9 million).

The company generated EBITDA of €298.0 million in Q3 2017. This is 13 per cent higher than last year (€264.0 million) and 18 per cent more than a quarter ago (€253.4 million). The increase is mainly due to volume-driven sales growth and income from the equity investment in Siltronic. High plant utilisation also strengthened EBITDA in the reporting quarter. The group’s EBITDA margin from July through September 2017 was 22.7 per cent (Q3 2016: 22.9 per cent).

"At Wacker, third quarter was the most successful so far this year," said group CEO Rudolf Staudigl. "Demand for silicones and polysilicon was especially strong, with the two divisions posting news volume records. Our robust performance more than compensated for the headwinds from markedly higher raw-material prices and a stronger euro. Given the continued strength of business, we are upgrading our forecast. This means our 2017 earnings will be higher than last year."

The company has raised its earnings forecast for full year 2017. EBITDA is now expected to be at €1 billion, exceeding last year’s adjusted figure of €955.5 million. Previously, Wacker anticipated that EBITDA would be between €900 - €935 million. The reasons for the upgrade are the group’s strong business performance as well as the income from its stake in Siltronic AG. Group sales are expected, as before, to rise by a mid-single-digit percentage compared with last year’s €4,634.2 million. (RR)

Fibre2Fashion News Desk – India