Wacker Silicones reports 73% earnings growth in second quarter

Munich, Germany – Wacker Silicones, part of chemicals group Wacker Chemie AG, has reported strong growth in the second quarter, driven by demand in certain markets.

The division saw earnings (EBITDA) increase 73% year-on-year to €90 million in the second quarter while sales increased 3% to €719 million, Wacker reported.

The German supplier linked higher sales to demand ‘developing well’ in the industrial coatings sector, coatings and consumer-related applications such as textiles.

Despite a decline in demand from the automotive industry, Wacker noted that sales of silicone specialties remained positive overall.

The earnings improvement, meanwhile, was mainly due to positive volume and product mix effects.

Furthermore, thedecline in raw material and energy prices and better plant utilisation rates also had a positive impact on earnings, Wacker reported in its second quarter results.

The earnings margin for the quarter increased significantly to 12.6%, up from 7.4% in the second quarter of 2023 and 11.4% in the preceding quarter.

“Even though a sustained turnaround is not yet in sight, we are seeing the first signs that the economy is recovering,” said group president and CEO Christian Hartel.

According to Hartel, inflation rates are dropping “at a faster rate than expected” and energy and raw-material prices have eased.

The group, Hartel noted, is seeing a gradual increase in demand in some areasparticularly for specialty silicones, which have shown a positive development recently.