Home / Knowledge / News / Textiles / Wacker posts €1,217.6 million sales in Q1 2018
Wacker posts €1,217.6 million sales in Q1 2018
Apr '18
Courtesy: Wacker Chemie AG
Courtesy: Wacker Chemie AG
The Munich-based chemical company Wacker Chemie has posted sales of €1,217.6 million in the fourth quarter of fiscal 2018 (Q1 2017: €1,218.8 million). Better prices, especially for silicone products, and an improved product mix in chemicals were the main sales drivers. The group sales climbed by 4 per cent to €1.22 billion, on par with the year-ago sales.

In Q1 2018, Wacker posted earnings before interest, taxes, depreciation and amortisation (EBITDA) of €254.5 million. That was 11 per cent higher than last year (€229.3 million) and 9 per cent more than in Q4 2017 (€233.4 million). Primary drivers of this robust growth were better prices for chemical products and higher income from the stake in Siltronic. As a result, Wacker more than compensated for the marked year-over-year and quarter-over-quarter increase in raw-material costs. Earnings also benefited from strong plant utilisation in the reporting quarter.

Net income totaled €79.1 million in the reporting quarter (Q1 2017: €665.9 million). The high year-ago figure included net income of €634.7 million from discontinued operations in connection with the deconsolidation of Siltronic as a Wacker segment. Income from continuing operations, on the other hand, more than doubled at €79.1 million (Q1 2017: €31.2 million). Earnings per share came in at €1.52 in the reporting quarter (Q1 2017: €13.19).

"Wacker performed well in Q1 2018," said CEO Rudolf Staudigl. "Despite strong currency headwinds, we matched our good sales of a year ago. At the same time, we achieved a substantial increase in EBITDA in spite of markedly higher raw-material prices and ongoing costs at our Charleston, Tennessee site, where production was still shut down in the first quarter. We are now starting the process of gradually ramping up the site. This means that we will again have polysilicon from Charleston available for sale in the second quarter. Our chemical business performed robustly in the reporting quarter, with silicones experiencing especially strong demand. In this market environment, we achieved substantial price increases. Provided this trend continues, and no unexpected events impact the global economy, we may even exceed our current full-year earnings forecast."

Wacker anticipates that business will experience higher raw-material costs and headwinds from a stronger euro against the US dollar in 2018. Given these underlying conditions, group sales are expected to increase by a low-single-digit percentage. EBITDA growth should continue – increasing by a mid-single-digit percentage versus last year. Wacker expects its EBITDA margin to be slightly higher than a year ago. Depreciation of about €550 mil-lion will be significantly lower than a year ago. Wacker expects group net income from continuing operations to rise markedly. Net cash flow is forecast to be clearly positive, but substantially below last year’s figure, due to higher capital expenditures. Net financial debt will remain on par with last year. (RR)

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: EVG photos from Pexels

Apparel/Garments | On 16th Aug 2018

Bangladesh ups garment export target to $32.689 bn

The Government of Bangladesh has increased the country’s readymade...

Courtesy: PR Newswire

Apparel/Garments | On 16th Aug 2018

Shoppers go to stores for thrifting experiences: Survey

Despite growth in e-commerce, shoppers still head to retail stores...

Pak ministry invests in training textile sector workers

Textiles | On 16th Aug 2018

Pak ministry invests in training textile sector workers

Pakistan’s ministry of commerce and textile industry is offering...

Interviews View All

Rashi Menda

Every fifth sale we make on Zapyle is a repeat purchase

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Shivani Swamy

The Livinguard Technology is owned by Green Impact Holding AG based in...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Kevin Nelson

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

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


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

August 2018

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

news category

Related Categories:

Advanced Search