Wacker reports 33% growth in silicones earnings

Munich, Germany – Wacker Chemie AG’s silicones division has reported a strong quarter with a double-digit increase in earnings (EBITDA).

Over the three months to end of March, the division increased its sales 5% year-on-year to €745 million, while earnings grew 33% to €108 million, Wacker reported 30 April.

The German supplier linked the development mainly to “an improved product mix, with a significantly higher proportion of speciality products.”

Sales volumes of products for the health sector, including silicone adhesives for wound care, were particularly high, said Wacker.

In addition, volumes of silicones for high-performance LEDs and displays as well as for adhesive labels also increased compared to last year.

“Given the persistently weak market environment, we started the year off well,” said president & CEO Christian Hartel.

Weak economic conditions, Hartel said, continue to impact the ordering behaviour of many customers.

Furthermore, US trade policies have caused “considerable uncertainty” in the markets in recent weeks, he added.

Commenting on the silicones division, Hartel said the business has shown “strong performance over the past few months with an uptick in sales and earnings.”

Hartel linked the growth to “strategically focusing on speciality business” including products that “are generally developed on a customer-specific basis, have a longer value-added chain and achieve higher margins.”