Wacker polysilicon ops to boost 2014 EBITDA

Jul 22, 2014 - German chemicals producer Wacker Chemie AG (ETR:WCH) said today that the good performance of its polysilicon division and some one-off effects have convinced it to revise upwards its forecast for 2014 EBITDA.

The Munich-based company now expects to record an year-on-year increase of at least 33% in full-year EBITDA, or earnings before interest, tax, depreciation and amortisation. In 2013, Wacker booked an EBITDA of EUR 678.7 million (USD 914m). Its previous guidance was for a rise of at least 10%.

The company noted it had experienced solid demand, especially at its polysilicon segment, which is also seen to contribute additional special income in the third quarter of the year. More specifically, Wacker explained it has cancelled or restructured certain contracts with clients in the solar power industry and estimates that this move would lift EBITDA at the polysilicon unit and within the group as a whole by about EUR 90 million in the third quarter.

Overall, the retained advance payments and damages received as a result of the contract terminations will boost 2014 EBITDA by EUR 210 million in total, Wacker concluded.

(EUR 1.0 = USD 1.347)

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