German Wacker's Q3 earnings drop on low silicon prices
Oct 31, 2013 - German chemicals producer Wacker Chemie AG (ETR:WCH) reported today its net income in the third quarter of 2013 plunged 81% year-on-year to EUR 5.4 million (USD 7.4m) due to declining prices of solar silicon and semiconductor wafers.
Sales dropped 3% to EUR 1.165 billion in the period July to September despite the increase in polysilicon demand. Operating profit stood at EUR 35 million compared with EUR 72.5 million for the period the year before. Earnings per share fell to EUR 0.09 from EUR 0.54 in the third quarter in 2012.
The low earnings are a result mainly of the around 30% drop in the solar silicon prices year-on-year as well as unfavourable exchange-rate effects, the company said.
Despite the negative development, the group has kept its outlook for the full year. Wacker expects to end 2013 with a positive net income and sales in the range of EUR 4.5 billion to EUR 4.63 billion.