Wacker Chemie's profit plunges in H1 2019

German chemicals company Wacker Chemie AG (ETR:WCH) today said its second-quarter (Q2) net profit in 2019 has fallen by 55.4% on the year to EUR 37.2 million (USD 41.3m) after a decrease in solar-grade polysilicon and standard silicones prices.

Higher energy costs and increased depreciation also contributed to the year-on-year drop in earnings. For the whole first half (H1) of 2019, Wacker Chemie’s profits contracted significantly, as is visible from the table.

Wacker’s polysilicon division reported EBITDA of just EUR 5.7 million for the second quarter of 2019, down 85% from a year before. This was due to a drop in average polysilicon prices, inventory write-downs and a significant increase in energy prices. Sales stood at EUR 169.9 million, down by 30% year-over-year because of the lower prices and also because of reduced volumes.

Wacker Chemie still expects its sales in 2019 to grow by a mid-single-digit percentage when compared to the previous-year result. The company noted that with the global economy losing momentum and China’s solar market yet to revive, it now expects full-year EBITDA to be closer to the bottom end of the previously announced range. That range envisages a drop of between 10% and 20% from 2018 figures.

(EUR 1 = USD 1.11)

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