Wacker adjusts outlook on weak second quarter results

Munich, Germany – Wacker Chemie AG has lowered its full year outlook following a weak second quarter performance, particularly by the silicones and polysilicon segments.

Wacker expects to post sales of €1.75 billion for the three months to end of June, down nearly 49% from the €4.25 billion reported the year before.

Earnings (EBITDA) is set to come in at €225, 82% lower than the €1.25 billion reported the year before, said Wacker in second quarter preliminary figures.

For the full year, the German group has lowered its financial outlook, now expecting sales to come in between €6.5 billion and €6.8 billion, compared to the previous guidance of between €7 billion and €7.5 billion.

Full-year earnings are now expected to be between €800 million and €1.0 billion, down from the previous guidance of between €1.1 billion and €1.4 billion, Wacker reported 18 July.

According to preliminary figures, sales at Wacker Silicones came in at €700 million, down by 25% year over year.

Second-quarter earnings is expected to fall 82% to €50 million, compared to the €277 million reported in 2022.

Wacker said it expected full-year sales for the division to come in between €2.7 billion and 2.9 billion, against the previous guidance of €3.1 billion to €3.3 billion.

The earnings margin is projected to be around 10%, considerably lower than the previous guidance of 15%.

“Our expectations have declined primarily due to ongoing weak customer demand in a large number of industries,” said president and CEO Christian Hartel.

Furthermore, continuing inventory-reduction measures by customers and the lower year-over-year prices for many of wacker products have impacted results.

“Numerous market experts anticipated stronger demand in the second half-year – an assumption that was reflected in our previous forecast,” explained Hartel

However, he concluded, “Wacker, like so many other chemical companies, has yet to see a recovery.”

Wacker will publish its interim report for the first half on 27 July.