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UPDATE 1-Wacker Chemie raises 2014 profit forecast on strong polysilicon demand
July 22, 2014 / 11:52 AM / in 3 years

UPDATE 1-Wacker Chemie raises 2014 profit forecast on strong polysilicon demand

* Now sees 2014 EBITDA up by more than one third

* Cites strong demand at polysilicon unit

* Shares hit four-month high (Adds analyst estimate, shares, previous statements)

By Ludwig Burger

FRANKFURT, July 22 (Reuters) - Germany’s Wacker Chemie raised its full-year core profit forecast for 2014, citing cost cuts and strong demand at its polysilicon unit, which mainly serves the photovoltaic industry.

It now expects earnings before interest, taxes, depreciation and amortisation (EBITDA) to be up by at least a third this year, compared with last year’s 678.7 million euros ($915 million), to reach at least 905 million euros.

The company had previously - in March - said it expected its 2014 core profit would increase by at least 10 percent from the year before. It reiterated that forecast in May.

Analysts, on average, had expected full-year EBITDA of 884 million euros but the Thomson Reuters SmartEstimate, which ascribes a higher weighting to analysts with the best track record, forecast 906 million euros.

Wacker’s shares were up 3.2 percent at 1149 GMT, hitting a four-month high due to the outlook hike on Tuesday.

The company also said it expected additional income from its polysilicon business that would boost group EBITDA by about 90 million euros in the third quarter due to certain solar-sector customers buying themselves out of long-term contracts.

Wacker, which is due to publish second-quarter financial results on Aug. 1, said in May that it expected polysilicon prices to rise in the second quarter from the first three months of the year.

Chinese solar panel maker Yingli Green Energy said last month that its first-quarter results were helped by higher solar-panel prices, and predicted higher module shipments in the second quarter.

$1 = 0.7417 Euros Editing by Maria Sheahan and Pravin Char

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