March 5 (Renewables Now) - German chemicals company Wacker Chemie AG (ETR:WCH) said today it expects sales to rise by a mid-single-digit percentage in 2019, but EBITDA to decline by 10%-20% on the year.
For comparison, in 2018 the group’s sales amounted to EUR 4.98 billion (USD 5.64bn), while earnings before interest, tax, depreciation and amortisation (EBITDA) was EUR 930 million. Wacker explained its forecast for an increase in 2019 sales with higher polysilicon and chemical sales volumes, and blamed the projected decrease in EBITDA on lower average prices for polysilicon.
Wacker noted that the expected fall in EBITDA will accordingly affect other earnings indicators, including net profit, which in 2018 plunged by 71% to EUR 260 million, based on preliminary figures.
The group now expects net cash flow for 2019 to be clearly positive and significantly higher than the EUR 125 million registered in 2018.
Wacker's guidance does not include insurance compensation payments for the loss event at its polysilicon plant in Charleston, Tennessee. That particular facility ceased production in the first months of 2018 and concluded gradual ramp-up in December.
The group will include its full outlook for 2019 in the annual report for 2018, which will be published on March 19, 2019.
(EUR 1.0 = USD 1.133)