Wacker upgrades annual earnings forecast

ERJ staff report (TP)

Munich, Germany – Wacker Chemie AG has upgraded its annual projection for EBITDA to be at least one third higher than last year’s €678.7 million.

Before this announcement, made on 22 July, Wacker had expected to surpass its 2013 EBITDA by at least 10 percent.

The upward revision is based on “good business performance and strong demand”, especially at Wacker Polysilicon, and “success at reducing costs”. Furthermore, Wacker expects additional special income from its polysilicon activities in Q3.

The company has terminated or restructured contracts with solar-sector customers. As a result, Wacker’s financial statements for Q3 2014 will recognise special income from retained advance payments and damages received that will increase EBITDA and EBIT at Wacker Polysilicon and within the Group by some €90 million.

Wacker already posted a similar special-income item of €114 million in Q1 2014. Consequently, Wacker anticipates from the current perspective that retained advance payments and damages received, arising from terminated contracts with polysilicon customers, will improve full-year EBITDA by a total of some €210 million.