Agency Report –
Munich – German chemical firm Wacker performed poorly last year, with preliminary figures indicating that revenue declined by 11% year-on-year to €5.7 billion ($5.95 billion), while net profit shrank by 20% to €265 million, the company said on Tuesday.
With approximately 16,000 employees, Wacker plays a significant role in the global market across several sectors.
However, the situation was not equally poor in all business areas: Revenue in the largest division, silicones, even increased by 2% to €2.8 billion in the preliminary figures for the full financial year compared to the previous year.
Silicones are plastics used in a wide range of industries, from automotive to construction and cosmetics.
However, the company faced negative consequences due to the price war in the solar industry, caused by the large overcapacity of Chinese manufacturers.
The corporation, among other things, produces polysilicon, one of the most important raw materials for the solar industry. The ruthless competitive displacement in China had a full impact on Wacker, with revenue from the polysilicon division dropping by 41% year-on-year to €950 million.
Polysilicon is also the central raw material for the semiconductor industry, and according to the company, every second computer chip worldwide is made from polysilicon produced by Wacker. In this area, sales reportedly increased, according to the company.
Chief executive Christian Hartel and his colleagues have not yet provided a forecast for the current year, which is expected to be released in March when the final business figures are presented.
