MUNICH (dpa-AFX) - German chemical company Wacker Chemie AG (WKCMY.PK, WKCMF.PK) reported Friday that its second-quarter net income increased 2.7 percent to 60.5 million euros from last year's 58.9 million euros. Earnings per share came in at 1.17 euros, 1.6 percent higher than 1.15 euros a year ago.
WACKER generated EBITDA of 253.4 million euros, about 4 percent less than last year's 265.0 million euros. One of the main reasons for the year-over-year decline was the fact that raw-material prices were higher. On the other hand, high plant utilization rates strengthened EBITDA in the reporting quarter.
The Group's EBITDA margin was 20.8 percent, down from 22.1 percent last year.
Sales for the quarter increased 1.6 percent to 1.218 billion euros from 1.199 billion euros a year ago.
Wacker achieved a slight increase in sales compared with the adjusted prior-year figure reflecting the deconsolidation of Siltronic.
Looking ahead, Wacker has raised its earnings forecast for full-year 2017. EBITDA is now expected to be between 900 million euros and 935 million euros. The upper figure corresponds to the prior year's EBITDA adjusted for special income of 935.2 million euros. The company had previously expected adjusted EBITDA to decline by a mid-single-digit percentage.
The EBITDA margin is expected to be somewhat below last year's figure of 20.6 percent. On balance, product prices will be lower and raw-material prices will be higher, both of which will weigh on the EBITDA margin.
According to the company, the revision is due to the strength of chemical business, as well as the fact that income from the stake in Siltronic AG is taken into account and is likely to be higher than previously anticipated.
Group sales are still expected to rise by a mid-single-digit percentage compared with last year's 4.634 billion euros.
Group CEO Rudolf Staudigl said, 'After the first six months of the year, we remain firmly on track to achieve our full-year targets. Customer demand remains high, especially for silicones, but also for polymer products.'
Copyright RTT News/dpa-AFX