Wacker Chemie AG (Munich, Germany) has released quarterly results for the third quarter of 2012, reporting a 29% year-over-year decline in sales to EUR 269 million (USD 348 million) in its polysilicon division.

The division increased sales both year-over-year and quarterly, but was impacted by an estimated 40% drop in polysilicon prices over the third quarter of 2012. Despite this decline and a reduction in plant utilization to 80% over the quarter, the division still achieved an EBITDA margin of 29%.

"The WACKER Group has performed respectably in a difficult third quarter despite a number of challenges," stated Wacker CEO Rudolf Staudigl. "However, the continued slowdown in global economic growth and the particular problems in the solar industry left their mark on our figures for Q3 2012."

"Sustained price competition, high inventories, the difficult financial situation of many market players and the anti-dumping proceedings against Chinese solar manufacturers currently characterize our polysilicon business."

Wacker to delay completion of Tennessee facility

Wacker Chemie also expressed confidence in the future of the PV market, noting that it will likely benefit from consolidation due to its industry position. Wacker estimates that global PV installations will be greater than 30 GW in 2012, and will total nearly 40 GW in 2012.

However, Wacker also notes that there are currently very high inventory levels in the PV industry, and that this impacts demand for polysilicon. As a result of these factors, the company will delay completion of its polysilicon plant in the U.S. state of Tennessee to mid-2015, 18 months later than originally planned.

Wacker invested EUR 291 million (USD 377 million) in expansions during the quarter, with more than 2/3 of this total supporting the construction of its Tennessee polysilicon facility. 

2012-10-25 | Courtesy: Wacker Chemie  | solarserver.com © Heindl Server GmbH

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