Sales also benefited from positive exchange-rate effects due to the stronger US dollar. On the other hand, volumes that were somewhat lower overall compared with a year earlier had a dampening effect on sales, the company said in a press release.

From July through September, Wacker Chemie AG generated sales of €2,132.2 million in the third quarter, 29 per cent higher than in the same period last year (€1,658.6 million). The Munich-based chemical company finished the third quarter with significant sales growth. Higher selling prices were the main growth driver compared with a year earlier.

In the third quarter, Wacker posted EBITDA (earnings before interest, taxes, depreciation and amortisation) of €456.6 million (Q3 2021: €449.5 million), up 2 per cent year over year. However, surging energy and raw-material prices in particular held back earnings growth, reducing EBITDA by more than €300 million year over year. Compared with a quarter earlier (€625.8 million), EBITDA decreased 27 per cent. The group’s EBITDA margin was 21.4 per cent for the three months from July through September 2022. A year earlier, the figure was 27.1 per cent, while the prior quarter’s EBITDA margin was 28.8 per cent.

“Against a backdrop of rising macroeconomic and geopolitical challenges, Wacker fared very well in the third quarter,” said CEO Christian Hartel. “Despite even higher energy costs, we once again succeeded in growing both our sales and EBITDA year over year. I see this as clear proof of our competitiveness amid the current, more difficult environment and of the resilience of our business model.”

In the third quarter, group sales increased year over year in every region, mainly due to higher selling prices. The biggest increase percentage- wise was in the Americas, where sales climbed 46 per cent to €346.7 million (Q3 2021: €237.5 million), due in part to exchange-rate effects. Sales in Asia reached €965.8 million, up 37 per cent from €707.5 million a year earlier. In Europe, sales rose 12 per cent to €714.5 million (Q3 2021: €638.2 million).

Wacker confirmed its full-year forecast of July 28 in the upper half of the range. EBITDA is now expected to come in between €2.1 billion and €2.3 billion (previous guidance: between €1.8 billion and €2.3 billion). Higher energy, raw-material and logistics costs are likely to impact EBITDA by around €1.3 billion to €1.4 billion (previous guidance: €1.5 billion). Wacker continues to expect full-year sales to come in between €8 billion and €8.5 billion.

Fibre2Fashion News Desk (RR)