August 1 (Renewables Now) - 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.
|All in EUR million||Q2 2019||Q2 2018||H1 2019||H1 2018|
|Net profit (loss) for the period||37.2||83.5||31.7||162.6|
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)