Germany: Wacker’s silicones division has driven its sales growth in 2018 despite a contraction in the polysilicon market. Its group sales rose by 1% year-on-year to Euro4.98bn in 2018 from Euro4.92bn in 2017. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 8% to Euro930m from Euro1.01bn. It blamed this on issues at its Charleston plant in the US, an on-going insurance claim and higher raw material and energy costs.
“From today’s perspective, 2019 is not going to be an easy year,” said chief executive officer Rudolf Staudigl. “For our chemical divisions, we are confident that our excellent products will keep us on our growth path. On the other hand, solar-grade polysilicon overcapacities in China are slowing the earnings trend at our polysilicon business – and thus at the group – despite our leading market and quality position.” He added that a ‘particular’ challenge facing energy-intensive companies like Wacker was the increase in electricity prices in Germany.
