Wacker net income totals to €84 million in Q2FY18

27 Jul '18
2 min read
Courtesy: Wacker Chemie AG
Courtesy: Wacker Chemie AG

The net income of Wacker Chemie in Q2 of fiscal 2018 has totaled to €83.5 million as compared to €60.5 million in Q2 of 2017. Sales was posted at €1,329.9 million as against €1,218.3 million in 2017. The rise was with better prices, especially for silicone products, by volume growth for chemical products and by positive effects from the chemical-product mix.

In the reported period, Wacker continued growing its sales in every region. The biggest increase was in Asia, where sales rose 13 per cent to €495.7 million (Q2 2017: €440.3 million). Sales in Europe reached €543.2 million, up 7 per cent over last year’s figure of €506.0 million. In the Americas, sales reached €223.7 million (Q2 2017: €214.2 million), an increase of 4 per cent.

Wacker generated EBITDA of €260.5 million in the second quarter of 2018. That was 3 per cent more than a year ago (€253.4 million) and 2 per cent more than a quarter ago (€254.5 million). Growth drivers were better prices for chemical products and higher income from the stake in Siltronic. The group’s EBITDA margin for the reported period was 19.6 per cent against 20.8 per cent in the corresponding quarter of previous year.

"After the first six months of the year, we are firmly on track to achieve our full-year targets," said Group CEO Rudolf Staudigl. "Our chemical portfolio is currently performing very well and customer demand for silicones, in particular, is very high. In this market environment, we are posting volume growth with specialty products and achieving substantial price increases for standard silicones."

"The intensifying trade dispute between the US and both China and the EU poses a significant risk to the global economy. In addition, markedly higher raw-material costs reduce our earnings. On the other hand, our chemical business is performing considerably better than anticipated at the start of the year. The first six months have delivered a good basis for Wacker’s development in the current year. Provided there is no economic downturn, we could outperform our current full-year earnings forecast," explained Staudigl

The Munich-based chemical company continues to expect that group sales will grow by a low-single-digit percentage relative to last year (€4,924.2 million). EBITDA is likely to rise by a mid-single-digit percentage compared with last year (€1,014.1 million). The net income from continuing operations is likely to rise markedly. (RR)

Fibre2Fashion News Desk – India

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