By: ICN Bureau
Last updated : May 01, 2021 2:44 pm
WACKER performed very well in Q1 2021
WACKER posted EBITDA (earnings before interest, taxes, depreciation and amortization) of €246.4 million in Q1 2021. That was 42 percent higher than in the same period last year (€174.1 million). Relative to the preceding quarter (€196.0 million), EBITDA climbed 26 percent.
This strong growth stemmed from higher volumes and, in some segments, better prices, as well as from overall higher plant utilization rates. The Group’s ongoing efficiency program reduced costs, which also had a positive impact on EBITDA. The company encountered headwinds, however, from markedly higher raw-material prices both year over year and quarter over quarter. The EBITDA margin for January through March 2021 was 18.1 percent, compared with 14.5 percent in the same period last year. In the prior quarter, the EBITDA margin was 15.8 percent.
The Group earnings before interest and taxes (EBIT) also rose markedly year over year due to the factors already mentioned, coming in at €154.9 million (Q1 2020: €69.8 million). This was more than double the year-earlier figure and corresponded to an EBIT margin of 11.4 percent (Q1 2020: 5.8 percent). Net income totaled €106.6 million in the reporting quarter (Q1 2020: €68.9 million), corresponding to earnings per share of €2.06 (Q1 2020: €1.31).
WACKER revised upward the full-year 2021 forecast published in its Annual Report for 2020. Despite the continued risks connected with the coronavirus pandemic which are clearly evident in currently dynamic developments in India and Brazil, for example and even higher raw-material prices which are estimated to have a full-year impact of over €200 million, WACKER now expects to post somewhat stronger numbers than forecast at the beginning of the year. The company expects Group sales to exceed the previous year’s figure of €4,692.2 million by a low-double-digit percentage. WACKER had previously expected sales growth in the mid-single-digit percentage range. According to current projections, EBITDA is likely to increase by 15 to 25 percent versus last year’s figure (€666.3 million). The company had expected growth of 10 to 20 percent when presenting its 2020 Annual Report.
“WACKER performed very well in Q1 2021,” CEO Rudolf Staudigl said in Munich on Friday. “The best defenses against the coronavirus pandemic have proven to be our strong strategic focus on specialty chemical products that provide high added value for our customers, our quality leadership for polysilicon and the expansion of our biotechnology business. In particular, demand for polysilicon for solar and semiconductor applications has been on a very positive trajectory in the past months. Higher prices for solar-grade polysilicon have also helped our business. We expect prices to remain stable in the coming months.”
The CEO was also positive about the chemical divisions, which struggled with higher raw-material prices in some cases: “In the silicones market there was strong demand for our products. Here we are benefiting in particular from our business in high-margin specialties, which we have been continuously expanding for several years. In the past months, we were able to achieve significantly higher volumes for polymer products, especially in Asia.” Bioengineered products had also performed well, according to Staudigl: “In this area we benefited above all from strong demand for biopharmaceuticals.”