MUNICH, Germany—Wacker Chemie A.G. has closed the second quarter of 2021 with significant increases in both sales and earnings, due to strong consumer demand.
The Munich-based chemical company generated sales of $1.75 billion during the three months to end of June, up 40 percent compared to last year, and 10 percent sequentially.
Wacker linked the growth to positive product-mix effects and improved prices, especially for solar-grade polysilicon. Exchange-rate effects dampened sales somewhat.
Second-quarter earnings (EBITDA) tripled year-on-year to $382.6 million, mainly due to substantial year-over-year growth in both volumes and prices of solar-grade polysilicon.
Furthermore, higher volumes and better prices in the chemical divisions as well as very high plant utilisation rates also had a positive impact on earnings.
"Much higher" raw-material prices, however, had a negative impact on earnings, Wacker said.
During the period, Wacker Silicones generated sales of $759.1 million, up 22 percent from last year. Segment earnings almost double the prior year's level at $156.5 million, and came in 10 percent higher than the preceding quarter, Wacker noted.
Wacker said the increase was mainly due to higher volumes of both specialty and standard silicones. Growth was particularly strong, for example, in silicones used in consumer applications and sealants.
While product-mix and price effects contributed to the increased revenue in the silicones business, exchange rate effects dampened sales, Wacker said.
Commenting on the results, CEO Christian Hartel said Wacker's silicones business was "benefiting chiefly from its high-margin specialties, while customer demand for standard silicones remained high, too."