Wacker Sees Strong Sales, Earning Growth in Q1

Wacker Chemie has reported a jump in group sales for the first quarter of 2010 of 22% to €1.07 billion compared to 2009 amidst high demand. The group's Ebitda was up 61% to €254 million year over year; the net income for the quarter was reported at €106 million. The company said it expects its full-year sales to reach over €4 billion.

The company said it has boosted its profitability in both its chemical and semiconductor segments. At the three chemical segments, Ebitda of €87.0 million (Q1 2009: €51.1 million) outstripped the prior-year figure by 70%. With Ebitda of €1.2 million, Siltronic has returned to a profitable level after four quarters with losses (Q1 2009: €-60 million).

Despite lower polysilicon market prices, the company said its Polysilicon business unit succeeded in keeping its profitability very high. Its Ebitda in Q1 2010 came in at €157.5 million (Q1 2009: €168.1 million). Although 6% below the Q1 2009 record, Ebitda was well above the preceding quarters, which were affected by non-recurring items.

The company said the predicted global recovery for 2010 will further boost demand in its main sectors of interest, including chemicals, construction, electronics and photovoltaics. Wacker also said that if the world economy continues to grow as forecast, the company expects sales volumes to increase in every division during 2010.