Wacker ups 2014 profit guidance

Munich-based Wacker Chemie has raised its earnings forecast for this year based on a good business performance and strong demand, in particular for polysilicon.

The chemical company now sees its 2014 earnings before interest, taxes, depreciation and amortisation (Ebitda) at least one-third higher than last year’s €678.7m ($914m).

Before the guidance upgrade, Wacker had expected Ebitda to surpass its 2013 value by at least 10%.

In addition to benefiting from strong polysilicon and internal cost reductions, Wacker also expects to profit from special income from its polysilicon activities in the third quarter from terminating or restructuring contracts with solar sector customers.

“As a result, Wacker’s financial statements for Q3 2014 will recognise special income from retained advance payments and damages received that will increase Ebitda and Ebit at Wacker Polysilicon and within the Group by some €90 million,” the company says.

The company had already posted a similar special income item worth €114m in the first quarter of 2014.