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Wacker Chemie Profit Up; Sees Slightly Positive Net Income, Flat Sales In FY19

(RTTNews) - German chemical group Wacker Chemie AG (WKCMY.PK, WKCMF.PK) reported Thursday that its third-quarter net income increased to 86.3 million euros from 68.9 million euros last year. Earnings per share came in at 1.67 euros, up from 1.31 euros last year.

Group earnings before interest and taxes or EBIT rose 29 percent to 137.1 million euros from prior year's 106.5 million euros. EBIT margin was 10.8 percent, up from 8.6 percent a year ago.

WACKER posted EBITDA of 272.9 million euros, 13 percent higher than 241.7 million euros a year ago.

The company said the earnings growth reflected special income.

Rudolf Staudigl, CEO, said, "Although we posted strong EBITDA growth in Q3, this was due to special income. In operating terms, EBITDA fell quite significantly versus both last year and a quarter ago. We have started work on a comprehensive program to weatherproof our earnings and competitiveness."

Sales for the quarter came in at 1.27 billion euros, a growth of 2 percent from 1.24 billion euros last year. The growth was driven mainly by positive volume and product-mix effects and by favorable exchange-rate effects. This more than offset lower prices, in particular for solar-grade polysilicon, but also for standard silicones and a number of other chemical products

WACKER, as already announced, lowered its guidance for the full year 2019 and expects Group sales to be on par with last yea's 4.98 billion euros. Excluding insurance compensation, EBITDA is likely to be some 30 percent below last year's 930.0 million euros, while net income is expected to be slightly positive.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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