Increased prices for polysilicon lead to significant growth in Wacker Group earnings

German Wacker Chemie AG has closed Q2 2021 with significant growth in sales and earnings. In the quarter under review, the Munich-based chemical group generated revenue of €1,501 million ($1,763 million) compared to €1,072 million in Q2 2020. This is 40 percent more than in the previous year. Compared to the previous quarter (€1,359 million euros), sales grew by ten percent. According to the company, »strong customer demand« was key to this result. While the effects of the Corona pandemic had significantly slowed Wacker's business in Q2 2020, »sales volumes grew significantly in almost all product segments« in the quarter under review. The positive effects were also due to »better prices, especially for solar silicon«.
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to €326 million, more than three times as much as in the same period of the previous year. Here, too, the significant year-on-year increase in volumes and prices for solar silicon was the main factor. Net income for the quarter under review totaled €178.8 million($210 million) compared to €4.5 million in the same period in the previous year.
Looking at the first half of the year, sales increased by 26 percent year-on-year to €2,860 million ($3,359 million). Profit almost quadrupled from €73 million to €285 million ($334 million).
According to Group CEO Christian Hartel, who took over this job from Rudolf Staudigl in May, the polysilicon business developed »particularly well« in the first half of the year. A key driver here, he said, was »the high quality of our material for highly efficient solar cells and for the semiconductor industry, combined with very strong demand from our customers in a tight market.«
As a result, Wacker Polysilicon, the business unit for the semiconductor and photovoltaic industry, generated total sales of €352.9 million in Q2, more than doubling its revenue year-on-year (€152.5 million). EBITDA improved by €183.7 million to €148.7 million compared to the 2nd quarter of the previous year (€-35.0 million).
Wacker had already adjusted its sales and earnings expectations upward when presenting its Q1 2021 figures. In June, Wacker had again raised its full-year forecast and now expects full-year 2021 sales of around €5.5 billion. EBITDA for the full year 2021 is expected to be between €900 million and €1,100 million. One reason for the increased expectations is the continued positive development of polysilicon prices.

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