International. In the third quarter of 2018, Wacker Chemie AG increased sales and EBITDA year-over-year in its chemicals business. However, group sales and EBITDA were lower compared to last year, given the challenging market environment for solar silicon.
The Munich-based chemical company recorded sales of €1,242.7 million for the quarter (Q3 2017: €1,311.6 million). That was a 5% decrease compared to the previous year, mainly due to noticeably lower volumes and lower average prices for solar silicon. The decline was not fully offset by the chemicals business, which achieved better prices, positive effects on product mixing and higher volumes of silicone for specialties. Changes in exchange rates had only a marginal impact on the year-over-year sales trend. Wacker generated an EBITDA of €241.7 million in the third quarter of 2018. That was down 19 percent from last year (€298.0 million). Along with lower sales, one of the main factors slowing earnings was the sharp increase in raw material costs.
Compared to the previous quarter (1,329.9 million euros), sales fell by 7 percent amid lower volumes, especially due to the current market weakness for the solar energy business. EBITDA also fell by 7 percent compared to the previous quarter (€260.5 million). Wacker's EBITDA margin from July to September 2018 was 19.4 percent (Q3 2017: 22.7 percent). In the previous quarter, it was 19.6 percent.
In the third quarter of 2018, the Group's earnings before interest and tax (EBIT) amounted to €106.5 million (Q3 2017: €155.3 million), yielding an EBIT margin of 8.6 percent (Q3 2017: 11.8 percent). Net income for the quarter amounted to €68.9 million (Q3 2017: €104.2 million) and earnings per share stood at €1.31 (Q3 2017: €2.04).
"Our performance in the third quarter reflected different trends," said CEO Rudolf Staudigl in Munich. "On the one hand, our chemicals divisions produced strong overall growth, increasing their total sales and EBITDA year-over-year. Wacker Polysilicon, on the other hand, experienced much more difficult market conditions. Overall, Wacker's outlook remains positive for this year and beyond. Our chemicals business is developing strongly and photovoltaics, despite the temporary weakness of the market, is as promising as ever, especially due to the challenges of global climate policy. As a result, we continue to expect the Group's full-year sales and EBITDA to grow in 2018."
