On January 26th, 2012 WACKER Chemie AG (Munich, Germany) released preliminary fourth quarter and full year 2011 financial calculations, noting that weak demand reduced polysilicon business revenues to an estimated EUR 255 million (USD 336 million) in the fourth quarter of 2011, a 32% decline over the fourth quarter of 2010.

WACKER Polysilicon also predicts a 22% decline in EBITDA during the quarter to EUR 165 million (USD 217 million), but this figure includes EUR 65 million (USD 86 million) in payments from the termination of supply contracts. Overall, WACKER Chemie expects a 3% increase in 2011 revenues to EUR 4.91 billion (USD 6.46 billion) and an 8% decline in 2011 EBITDA to EUR 1.1 billion (USD 1.45 billion).

"Our business developed well over the first nine months," said WACKER CEO Rudolf Staudigl. "The decline in semiconductor and solar demand was stronger than we had expected and caused Q4 figures to come in below our estimate. Overall, we slightly increased our full-year sales with an operating result near the high prior-year level."


WACKER Chemie invests in polysilicon production in U.S., Germany

WACKER Polysilicon's results are evidence of the difficulty that many PV companies have had. The company notes that the EUR 65 million in payments due to the cancellation of polysilicon supply contracts comes from customers who have left the solar business.

WACKER Chemie also notes that it made significant investments in polysilicon production during the year, both at its Nünchritz, Germany and Charleston, Tennessee, U.S. hyper-pure polysilicon facilities. In October 2011 the company brought new production online at its Nünchritz facility, and continues construction of the Charleston plant.


Raw materials, energy costs impact profits

The company's decline in profitability was not solely due to its polysilicon sales, and the company notes that EBITDA in the fourth quarter of 2011 was lower across all business divisions compared to the fourth quarter of 2010. WACKER Chemie also notes higher year-over-year costs for raw materials and energy, stating that it spent EUR 160 million more in 2011 on raw materials and energy than in 2010.

WACKER Chemie will publish final figures on March 14th, 2012.

 

2012-01-27| Courtesy: WACKER Chemie AG | solarserver.com © Heindl Server GmbH

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