Wacker Chemie Earnings Miss Estimates on Silicon PricesSheenagh Matthews
Wacker Chemie AG, Europe’s largest polysilicon maker, reported third-quarter earnings that missed analyst estimates as prices for semiconductor wafers and solar silicon fell amid heightened competition from Asia.
Earnings before interest, taxes, depreciation and amortization declined 19 percent to 167.9 million euros ($230.1 million), the Munich-based company said today in a statement. Analysts had estimated Ebitda of 183.2 million euros. The stock dropped as much a 5.5 percent in Frankfurt trading.
Wacker reiterated its forecast that full-year sales will drop about 3 percent to 4.5 billion euros amid a decline in earnings. While a compromise in a solar dispute between the European Union and China boosted polysilicon demand, selling prices for the solar panel components stayed low, Chief Executive Officer Rudolf Staudigl said.
“Demand for polysilicon continued to surge in the third quarter,” Staudigl said in the statement. “The prices for solar silicon remain a challenge. They were about one third lower than a year ago.”
The stock declined as much as 3.85 euros to 65.71 euros and was down 4.8 percent as of 9:59 a.m. in Frankfurt, valuing the company at 3.5 billion euros.
Third-quarter sales fell 3 percent to 1.17 billion euros, also missing a 1.19 billion-euro analyst estimate. Net income plunged 81 percent to 5.4 million euros.
Wacker Chemie is majority-owned by the founding family’s holding company, Dr. Alexander Wacker Familiengesellschaft mbH.