Wacker Chemie AG’s (ETR:WCH) polysilicon division saw its third-quarter 2015 EBITDA drop by 49% year-on-year, due to lower special income, a decline in prices, and costs for a new plant.
The earnings before interest, tax, depreciation and amortisation (EBITDA) fell to EUR 91.8 million (USD 101m), mainly because special income in the reporting period stood at just EUR 17.8 million, while it amounted to EUR 92.3 million a year back. Adjusted for that effect, EBITDA was still down by nearly 16% due to costs for the new polysilicon plant in Charleston and lower polysilicon prices. These were in part offset by cost cutting measures and improved productivity.
In the second quarter of 2015, Wacker Polysilicon’s EBITDA was also much higher, at USD 161.4 million, due to a settlement with SunEdison Inc (NYSE:SUNE).
Third-quarter sales at the segment grew by 8% year-on-year and 4% quarter-on-quarter to EUR 271.4 million.
As for the full 2015, Wacker Chemie expects EBITDA to decrease “significantly” in annual terms. Revenues, meanwhile, will be slightly higher. The company pointed out that overcapacity persists along the entire supply chain, so it will keep its focus on production cost reductions.
(EUR 1 = USD 1.101)
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