Wacker Chemie Q3 adjusted EBITDA slumps due to falling silicon prices

Credit: REUTERS/MICHAELA REHLE

German chemicals company Wacker Chemie reported a 34% drop in its third-quarter adjusted core profit, blaming lower silicon prices, inventory valuation adjustments and a supplier's plant shutdown.

Oct 24 (Reuters) - German chemicals company Wacker Chemie WCHG.DE reported a 34% drop in its third-quarter adjusted core profit, blaming lower silicon prices, inventory valuation adjustments and a supplier's plant shutdown.

After adjusting for the effects of a one-off income from insurance compensation, Wacker posted its third-quarter earnings before interest, tax, depreciation and amortization (EBITDA) at 160.4 million euros ($178.59 million).

Analysts had expected an average of 241.7 million euros ($269.11 million) according to a consensus compiled by the Munich-based company, which had made a profit warning earlier this month.

The main factors dampening earnings in the third quarter were flagging silicon prices, inventory valuation adjustments and an unscheduled plant shutdown at a raw-material supplier temporarily restricted polymer production at the company's Burghausen site, it said.

Quarter-over-quarter figures, which included a 24% drop in EBITDA, were also influenced by 19.0 million euros ($21.15 million) in advance payments from a solar customer in the second quarter, the company added.

($1 = 0.8981 euros)

(Reporting by Zuzanna Szymanska in Gdansk; Editing by Clarence Fernandez)

((zuzanna.szymanska@thomsonreuters.com; + 48 58 778 52 86;))

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