Wacker Chemie Drops After Cutting Sales Outlook: Frankfurt Mover
Wacker retreated as much as 4.4 percent to 49.80 euros, the lowest intraday price since March 12, 2009. The Munich-based company cut its outlook to “slightly below” 4.9 billion euros ($5.9 billion) from about 5 billion euros, citing potential contract losses or delays from solar customers.
Polysilicon makers such as Wacker and GCL-Poly Energy Holdings Ltd. (3800) raised output in 2011, producing more than needed by solar-panel developers and creating a glut that sent prices below output costs for most manufacturers. Global panel demand is set to fall this year, a Bloomberg survey showed in March.
Wacker reported a 58 percent slump in second-quarter net income today, citing a “substantial reduction” in polysilicon prices. Some solar clients may not take their full contracted delivery of the material, or may delay or end contracts amid growing inventories and tight funding, it said in a statement.
A decline in panel demand this year would be the first since Germany kickstarted the modern solar industry in 2004 with a program of incentives. Solar-cell and panel makers including Q-Cells SE (QCE), once the biggest cell maker, have filed for bankruptcy in the past year amid lower-cost Chinese competition and growing stockpiles.
Wacker traded at 50.28 euros as of 11:01 a.m. Frankfurt time, extending its decline this year to 19 percent.
Earnings before interest, tax, depreciation and amortization totaled 241 million euros in the second quarter, beating the 229.4 million-euro average estimate of five analysts surveyed by Bloomberg.
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