Wacker silicones unit doubles earnings in third quarter

Munich, Germany – Wacker’s silicones division has reported a doubling of earnings (EBITDA) in the third quarter, helped by a significant increase in volumes.

For the three months to 30 Sept, the silicones unit posted earnings of €109 million, more than double the €51 million reported last year, and 20% higher than the preceding quarter.

Meanwhile, sales at the division increased by 8% year-on-year to €727 million, according to Wacker's financial report issued 28 Oct.

"The positive earnings performance is primarily due to higher volumes," stated Wacker, noting EBITDA margin at the silicones unit of 15.0%, compared to 7.6% in the prior-year third quarter.

Group-wide, Wacker was impacted by challenges around both the economic environment and level of demand in the chemicals industry.

“Despite considerable headwinds here, our earnings after the first three quarters of this year are higher than in the previous year,” commented the Wacker group's CEO Christian Hartel.

Many companies with direct sales to end consumers have curbed production, with the automotive and construction industries being particularly weak at the moment, noted Hartel.

However, with a firm focus on efficiencies and cost-discipline, Hartel said he was convinced that the Wacker group was “well positioned for the future.”