by Pierre Bertrand
Wacker Chemie, the German chemical company, has reported a decline in earnings for the third quarter, citing the challenging market conditions and lower selling prices as the main contributing factors.
According to the company, the net profit for the reporting period was €33.5 million ($35.4 million), compared to €258.9 million in the same period last year. The sales also fell by 29% to €1.52 billion.
The negative effect of high energy prices in Germany was highlighted as a significant factor impacting the company's results. In addition, lower volumes and lower plant utilization rates also played a role in reducing earnings.
Chief Executive Christian Hartel commented on the situation, stating, "Many of our customers in the chemical divisions are facing weak demand, which has led to cautionary ordering and short notice placements. Consequently, this has created pressure on prices in our chemical business."
Hartel further noted that there has been a significant decline in prices for solar-grade polysilicon, particularly within China.
Despite the challenges faced, Wacker has confirmed its 2023 guidance, with sales projected to reach around €6.5 billion and earnings before interest, taxes, depreciation, and amortization expected to fall between €800 million and €900 million.
