October 26 (Renewables Now) - Sales at the polysilicon business of Wacker Chemie AG (ETR:WCH) jumped 35% year-on-year and 39% quarter-on-quarter in the third quarter of 2017 on strong volume growth, supported by sales from inventory, the German chemical company said today.
The division recorded sales of EUR 341.7 million (USD 403.6m) for the three-month period. Its earnings before interest, tax, depreciation and amortisation (EBITDA) rose 3% from a year ago and 19% compared to the preceding quarter to EUR 85 million. EBITDA margin, however, declined to 24.9% from 32.5% in the same quarter of 2016 and 28.9% in the second quarter of 2017. Wacker said that while earnings were boosted by higher sales, EBITDA margin was dampened by product-mix and inventory effects.
The company's overall sales rose 14% year-on-year to EUR 1.31 billion. Chief executive Rudolf Staudigl said this has been the company's best quarter this year. "Demand for silicones and polysilicon was especially strong, with the two divisions posting new volume records," the CEO said and added that the company has managed to more than compensate for higher raw-material prices and a stronger euro.
Wacker lifted its full-year EBITDA guidance to EUR 1 billion from EUR 900 million-935 million, meaning it expects to exceed last year's EBITDA of EUR 955.5 million.
(EUR 1 = USD 1.181)