Wacker’s polysilicon division dives to €55 million loss in 2019
Summary
Major polysilicon producer Wacker Chemie has reported preliminary full-year 2019 financial results, highlighting higher than previously guided asset impairment charges on its polysilicon division as ASPs (Average Selling Price) remain at record lows leading to an EBITDA loss of €55 million. The company said that the impairment charge included the “companys subdued expectations about future price developments for solar-grade polysilicon.” Total group depreciation in 2019 was said to amount to around €1.32 billion, resulting in a total negative EBITDA of €630 million, compared to €260 million EBITDA in 2018. Wacker Group CEO, Rudolf Staudigl said "Our earnings last year were strongly influenced by non-recurring effects from insurance compensation received and from the impairment charge on fixed assets. Underlying conditions, however, remained unsatisfactory for solar-grade polysilicon, where prices fell markedly last year amid high overcapacity built up by state-subsidized competitors in China. We are currently working on a comprehensive program to make WACKER more efficient and capable, and to achieve substantial cost savings.