* Now expects 2012 sales below 2011 levels
* Q2 EBITDA 241 mln eur vs 235 mln Rtrs poll
* Shares indicated 2.6 percent lower in pre-market trade
FRANKFURT, July 25 Wacker Chemie, the
world's No.2 maker of polysilicon, scrapped its sales outlook
for the ongoing year, blaming the solar sector's ongoing
consolidation that has pushed many of its clients into crisis or
out of business.
"Growing supply-chain inventories and financing difficulties
among market participants could cause some polysilicon customers
to not take full delivery or to delay taking delivery, or lead
to the termination of contracts," the company said on Wednesday.
Wacker Chemie, whose polysilicon is a key material in the
production of solar cells, now expects 2012 sales to be slightly
below 2011 levels of 4.91 billion euros ($5.9 billion). It had
previously guided for sales of about 5 billion euros.
The solar sector has come under intense pressure, caused by
fierce competition from Asian rivals, overcapacity and falling
government subsidies for solar power.
This has driven some players out of business, including
German players such as Solon and Q-Cells,
that filed for insolvency after months of talks with creditors
In 2011, Wacker Chemie's cash-cow polysilicon unit accounted
for about 30 percent of group sales and about two thirds of
earnings before interest, tax, depreciation and amortisation
(EBITDA), with an EBITDA margin of more than 50 percent.
In the second quarter, the EBITDA margin at the unit
amounted to 41.9 percent.
On a group level, second-quarter EBITDA came in at 241
million euros, slightly higher than the 235 million average
estimate in a Reuters poll of banks and brokerages.
Wacker Chemie's main rivals in the production of polysilicon
include Hemlock Semiconductor, a joint venture between Dow
Corning, Shin-Etsu Handotai and
Mitsubishi Materials, as well as Korean OCI Co Ltd
and China's GCL-Poly Energy Holdings.