Wacker Chemie Posts Higher Second-Quarter Profit, Raises 2010 Sales Target
Wacker Chemie AG, the world’s second-largest maker of chemicals for production of solar modules and microchips, raised its outlook for annual sales following a recovery in demand for silicone used in electronics and cars.
Sales will total about 4.5 billion euros ($5.9 billion) in 2010, and earnings before interest, taxes, depreciation and amortization, or EBITDA, should exceed 2008’s record level of 1.06 billion euros. Wacker had previously guided for sales to increase to above 4 billion euros, and Ebitda to “grow significantly.”
Wacker, whose products are used in the production of modules to generate solar power, is benefitting from rising demand for renewable energy as well as from a recovery in the electronics industry. Chipmakers including Intel Corp., Samsung Electronics Co., and Taiwan Semiconductor, posted record profits from semiconductors as the global economy rebounds and consumers in emerging markets buy more electronic devices.
Net income in the second quarter totaled 135.4 million euros compared with a 74.5 million-euro loss in the year-earlier period. Sales rose to a record 1.2 billion euros, also helped by a stronger U.S. dollar.
Wacker shares have gained 34 percent in the past six months, rising faster than Germany’s MDAX benchmark index for medium-sized companies at 12 percent, for a market value of 6.65 billion euros.
The Munich-based company is controlled by the family of Peter-Alexander Wacker, chairman of the supervisory board and great grandson to Alexander Wacker, who founded the company in 1914.