Sales also benefited from the positive impact of the exchange rate due to the strengthening of the US dollar. On the other hand, volumes, which were generally somewhat lower compared to a year earlier, had a dampening effect on sales, the company said in a press release.
From July to September, Wacker Chemie AG’s sales in the third quarter amounted to 2,132.2 million euros, which is 29 percent higher than in the same period last year (1,658.6 million euros). The chemical company from Munich ended the third quarter with a significant increase in sales. Higher selling prices were the main driver of the year-over-year increase.
In the third quarter, Wacker reported EBITDA (earnings before interest, taxes, depreciation and amortization) of EUR 456.6 million (Q3 2021: EUR 449.5 million), an increase of 2 percent compared to the same period last year. However, sharp increases in energy and raw material prices in particular held back profit growth, reducing EBITDA by more than 300 million euros for the year. Compared to the previous quarter (EUR 625.8 million), EBITDA decreased by 27 percent. The group’s EBITDA margin was 21.4 percent for the three months from July to September 2022. A year earlier, this figure was 27.1 percent, while the EBITDA margin for the previous quarter was 28.8 percent.
“Amid growing macroeconomic and geopolitical challenges, Wacker delivered very good results in the third quarter,” said CEO Christian Hartel. “Despite even higher energy costs, we once again managed to increase sales and EBITDA year after year. I see this as clear evidence of our competitiveness in today’s more challenging environment and the sustainability of our business model.”
In the third quarter, group sales increased year-over-year in each region, primarily due to higher selling prices. The largest percentage increase was in the Americas, where sales rose 46 percent to €346.7 million (Q3 2021: €237.5 million), partly due to exchange rate effects. Sales in Asia reached EUR 965.8 million, an increase of 37% compared to EUR 707.5 million a year earlier. In Europe, sales increased by 12 percent to €714.5 million (Q3 2021: €638.2 million).
Wacker reaffirmed its annual forecast for July 28 in the upper half of the range. EBITDA is expected to be between 2.1 and 2.3 billion euros (previous forecast: 1.8 and 2.3 billion euros). Higher costs for energy, raw materials and logistics are likely to impact EBITDA by around EUR 1.3-1.4 billion (previous forecast: EUR 1.5 billion). Wacker still expects full-year sales of between 8 and 8.5 billion euros.
Fibre2Fashion News Service (RR)
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