Munich-based chemical conglomerate Wacker Chemie AG’s third quarter (Q3) net income came in at €259 million (~$258.5 million), down 2.2% year-over-year (YoY) due to higher prices for energy and raw materials.

However, the company’s sales rose to €2.13 billion (~$2.12 billion), a jump of 29% YoY on the back of higher selling prices even though the volumes were lower than last year. Further, sales also benefited from positive exchange-rate effects due to the stronger US dollar.

The company’s revenue from the polysilicon business surged 51% YoY to €619 million (~$619.2 million) on strong demand and prices.

The company said that the main driver of this increase was significantly higher average prices for solar-grade silicon, but slightly higher volumes YoY also contributed to the sales trend. The company said that prices for semiconductor-grade silicon rose YoY while the share of this product in the total sales volume grew further.

Wacker raised the full-year (2022) sales and Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) outlook for the polysilicon business to €2.2 billion (~$2.205 billion) and €850 million (~$852.1 million) respectively from €2.1 billion (~$2.1 billion) and €700-850 million (~$701.5-851.8 million) previously.

The company said that continuing high polysilicon prices were a further reason for an updated earnings forecast. Wacker said it expected EBITDA to be between €2.1 billion and €2.3 billion (~$2 and 2.2 billion) compared with the previous guidance of €1.8 billion-€2.3 billion (~$1.804-2.305 billion).

The company expects full-year sales to range from €8 billion to €8.5 billion (~$7.9-8.4 billion).

“Our strategic focus on specialty chemical products with high value-added for our customers, on highest-quality polysilicon for semiconductors and solar applications, and on the active expansion of our biotechnological activities contributes substantially to strengthening Wacker’s resilience and ensuring the company remains robust,” CEO Christian Hartel said.

The company’s Q3 EBITDA from polysilicon sales totaled €191 million (~$190.9 million) in Q3, down YoY by 5% owing to significantly higher prices for raw materials and energy costs clubbed with production slowdown in China.

Region-wise, the group’s sales in Q3 rose YoY by 46% in the U.S., generating revenue of €346.7 million (~$346.5 million) due in part to exchange-rate effects.

In Asia, Wacker’s sales grew YoY by 37% to €965.8 million (~$965.3 million) and 12% to €714.5 million (~$714.2 million) in Europe.

Wacker’s EBITDA for the period improved YoY by 2% to €457 million (~$456.8 million).

The company projects that increased logistics and raw materials costs are likely to impact the EBITDA by around €1.3-€1.4 billion (~$1.2-1.3 billion).

Wacker had reported a two-fold increase or a 100% YoY growth in its polysilicon sales at €1.53 billion (~$1.71 million) in 2021.

The company posted a YoY increase of 76% in revenue from polysilicon sales at €525 million (~$551.30 million) for the first quarter of 2022.