Wacker CEO strikes out at Chinese competitors

• Rudolf Staudigl highlighted polysilicon production overcapacity amongst Chinese competitors as he revealed Covid-19-battered second-quarter numbers for the Munich-based chemicals empire.

With Covid-19 battering figures across the board at German chemicals service Wacker Chemie, CEO Rudolf Staudigl took aim squarely at the company's rivals in the solar polysilicon sector when going over the rolling poly rate which is intensifying the results of the coronavirus on demand.

At the second-quarter earnings update released by the Munich-based conglomerate last week, Staudigl stated: "Structural overcapacity for solar-grade polysilicon persists amongst Chinese competitors."

Lower costs as well as "a marked quantity decline" in polysilicon sales throughout the 2nd quarter led to the Wacker Polysilicon division publishing sales of EUR153 million, down 17% on the EUR184 million taped in the very first three months of the year as well as 10% on the EUR170 million of sales in the corresponding duration of last year.

Loss

That added up to a revenues before rate of interest, tax, devaluation and also amortization (EBITDA) hit of EUR35 million for the larger service, following a EUR13.7 million opposite in the initial quarter as well as a EUR5.7 million EBITDA lift, a year previously.

The solar polysilicon travails contributed to an overall-group, second-quarter sales number of EUR1.07 billion which was 16% down, year-on-year, for a cliff-edge-fall in net income of 88%, by the very same contrast, from EUR37 million to simply EUR4.5 million.

Wacker has declined to release full-year advice despite the continuing Covid-19 unpredictability but has cautioned shareholders it anticipates year-on-year performance to be down up for sale, EBITDA and also EBITDA margin.