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UPDATE 2-Wacker Chemie cuts outlook, sees weak Q4
October 28, 2011 / 5:41 AM / 6 years ago

UPDATE 2-Wacker Chemie cuts outlook, sees weak Q4

* Says Q3 sales 1.28 bln eur vs 1.303 bln in Rtrs poll

* Says Q3 EBITDA 318 mln eur vs 305 mln in Rtrs poll

* Lowers 2011 outlook on semiconductor, polysilicon woes

* Shares indicated 1.2 pct lower

By Christoph Steitz

FRANKFURT, Oct 28 (Reuters) - German specialty chemicals group Wacker Chemie cut its full-year outlook, pointing to recovering production by Japanese competitors and tighter inventories at its polysilicon clients in the fourth quarter.

Larger peer BASF warned of reduced inventories at customers a day earlier while other European chemicals groups braced for slowing demand in Europe.

Wacker Chemie, the world’s No.2 maker of polysilicon, now expects 2011 sales of about 5 billion euros ($7.1 billion) and earnings before interest, tax, depreciation and amortisation (EBITDA) of 1.19 billion.

This compares with a previous sales forecast of more than 5 billion euros and EBITDA above the 1.19 billion reached in 2010.

“It’s bad of course that they’ve cut their outlook but it’s not a dramatic correction so I could imagine that shares will turn positive in the course of the day, after it has lost so much in recent months,” a trader said.

Shares in the company -- which are down 46 percent since June -- were indicated 1.2 percent lower at 0652 GMT.

Wacker said its Siltronic unit -- which makes hyper-pure silicon wafers for the semiconductor industry -- would suffer in the last three months of the year, as Japanese rivals had ramped up production faster than expected.

Siltronic had benefited from a supply shortage earlier this year, when Japanese producers were hit by a massive earthquake.

“The supply situation on world markets has returned to normal,” the company said on Friday.

Wacker said sales and margins at its polysilicon unit would fall in the fourth quarter as customers were tightening their inventories.

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 .

Wacker Chemie said third-quarter EBITDA came in at 318 million euros, above the 305 million average forecast in a Reuters poll. At 1.28 billion euros, however, sales were below analysts’ expectations.

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