Wacker sees double-digit percentage sales growth in polysilicon segment in 2021
Post date: 17/03/2021 - 10:57
German Wacker Chemie AG's total sales in fiscal 2020 fell short of the previous year's figure. This was due to the effects of the Corona pandemic, the company explained at the presentation of its annual report. Sales decreased by 5 percent to €4.69 billion ($5.59 billion). In particular, sales fell significantly in the 2nd quarter of 2020, the company said. In the 3rd and 4th quarters, this had been partially recovered »mainly thanks to robust demand from the construction industry and for polysilicon.« Sales of the Polysilicon business unit increased by two percent to €792.2 million ($944 million) in 2020.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) totaled €666.3 million (2019: €783.4 million). This is 15 percent less than a year ago. The main reason for this decline was a special payment from the previous year. In 2019, Wacker had recorded insurance payments of €112.5 million in cost of sales from the damage claim that occurred at the silicon production site in Charleston, USA, in 2017.
In fiscal 2021, Wacker anticipates growth despite the ongoing burdens from the Corona pandemic. The company aims to increase its sales by a mid-single-digit percentage due to expected higher sales volumes.
In its polysilicon business in particular, Wacker expects sales to increase by a mid-single-digit percentage in 2021 due to higher sales volumes. Due to strong growth in volumes and prices in the solar segment in recent weeks, revenue growth could also be in the low double-digit percentage range. »Polysilicon prices are not expected to decline on average for the year compared to 2020,« said Wacker's CEO Rudolf Staudigl.
By the end of 2022, Wacker aims to save around €250 million per year by reducing material costs and cutting around 1,200 jobs in the Group's administrative areas and non-operational functions in the business segments.