Start of another global PV upturn?

MUNICH, GERMANY: Wacker Chemie AG expanded its business in April-through-June 2013 compared with the preceding quarter. This growth primarily stems from increased demand at its chemical divisions. Volumes in many business areas outperformed both Q2 2012 and Q1 2013. Products for the construction industry experienced particularly strong demand due to seasonal effects.

Sales and earnings at the Munich-based chemical company were higher than in Q1 2013. As already expected, though, WACKER did not match the prior-year quarter's figures. WACKER posted sales of €1,150.3 million from April through June 2013, after €1,222.5 million last year, a decline of just under 6 percent. The low price levels for solar silicon and semiconductor wafers were the principal reason why sales did not reach the Q2 2012 figure. Compared with the preceding quarter (€1,076.3 million), however, sales were up roughly 7 percent.

In Q2 2013, WACKER achieved earnings before interest, taxes, depreciation and amortization (EBITDA) of €188.2 million - down some 22 percent from a year ago (€242.1 million), but over 14 percent above Q1 2013 (€164.5 million). The EBITDA margin for the second quarter was 16.4 percent, after 19.8 percent in Q2 2012 and 15.3 percent in Q1 2013. The Group's earnings before interest and taxes (EBIT) from April to June 2013 totaled €52.5 million (Q2 2012: €111.9 million). The corresponding EBIT margin was 4.6 percent, after 9.2 percent a year ago. Net income for the quarter under review was €15.1 million (Q2 2012: €61.1 million) and earnings per share amounted to €0.27 (Q2 2012: €1.19).

WACKER's earnings trend from April through June was once again marked by the low price levels for polysilicon. Solar-silicon prices in the second quarter were down about one-third from their prior-year levels. For semiconductor wafers, prices were roughly 10 percent lower than in Q2 2012. On the other hand, total EBITDA at the three chemical divisions climbed to €116.6 million, almost 4 percent above Q2 2012 (€112.3 million) and 21 percent up on Q1 2013 (€96.3 million). The increase was chiefly prompted by volume growth, which, in some cases, was due to seasonal effects. Second-quarter EBITDA included €23.8 million (Q2 2012: €19.4 million) in retained advance payments and damages stemming from terminated contracts with polysilicon customers.

WACKER has specified its sales forecast for full-year 2013, with Group sales now expected to reach €4.5 billion, after €4.63 billion last year. EBITDA for fiscal 2013 is still projected to fall short of the previous year's figure (€787 million).

"In the face of a persistently difficult market and competitive environment, WACKER closed the first half of 2013 with satisfactory results," said CEO Rudolf Staudigl in Munich. "Our chemical divisions performed well during the April-through-June period. In polysilicon, low price levels and trade-policy risks remain a challenge. A compromise has now been found in the solar dispute between the European Union and China. If this settlement is implemented, it could mark the start of another global photovoltaics upturn."