Wacker Chemie posts strong results on Asian solar demand (updated)

OCI Holdings

06/02/2014 08:26

* Q4 EBITDA 158 mln eur vs I/B/E/S forecast 119 mln * Says polysilicon demand picked up strongly in Q4 * Shares indicated 2.0 percent higher (Adds CEO quotes, Q4 results, background, shares) FRANKFURT, Feb 6 (Reuters) - German specialty chemicals maker Wacker Chemie  WCHG.DE  posted better than expected fourth-quarter results on Thursday, citing stable prices and a pickup in demand for polysilicon, which it supplies to the crisis-ridden solar industry. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the last three months of 2013 rose 18 percent to 158 million euros ($213.8 million), beating the 119 million euro Thomson Reuters I/B/E/S estimate. Sales for the period reached 1.09 billion euros, also slightly higher than the 1.08 billion analyst forecast. "We are pleased that our final-quarter sales and earnings were better than in 2012. In polysilicon, volumes picked up strongly, even though prices have not improved noticeably in the fourth quarter," Chief Executive Rudolf Staudigl said in a statement. Wacker Chemie is the world's No.2 maker of polysilicon, a key ingredient needed to make solar cells, and the group's polysilicon business accounted for more than a third of EBITDA in 2013. China, which is strongly expanding in renewable energy, was the main driver for polysilicon demand, Wacker Chemie said, offsetting a weak solar industry in Europe, where years of falling government subsidies have driven numerous makers of solar panels and cells into insolvency. Having plunged to about $20 per kg from a 2008 peak of almost $400 and squeezing profit margins at Wacker Chemie as well as major rivals Hemlock Semiconductor and Norway's Renewable Energy Corp  REC.OL , polysilicon prices have remained largely stable over the past months. Wacker Chemie also competes with Mitsubishi Materials 5711.T , as well as Korean OCI Co Ltd  010060.KS  and China's GCL-Poly Energy Holdings  3800.HK . ($1 = 0.7390 euros) (Reporting by Christoph Steitz; Editing by Victoria Bryan) ((christoph.steitz@thomsonreuters.com)(+49 69 7565 1269)(Reuters Messaging: christoph.steitz.thomsonreuters.com@reuters.net)) Keywords: WACKERCHEMIE RESULTS/