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Wacker Chemie AG closed Q1 2024 with lower sales and earnings than the strong prior-year quarter. The chemical group generated sales of around €1.5 billion in the reporting quarter, 15% less than a year earlier (€1.74 billion). This decrease was chiefly due to lower selling prices. By contrast, sales rose 8% compared with the preceding quarter (€1.38 billion).
Wacker confirmed its forecast for 2024, in which it expects business to slow slightly compared to last year. Sales are forecast at between €6 billion and €6.5 billion. The chemical group expects EBITDA between €600 million and €800 million. At the same time, Wacker expects volume growth and lower selling prices.
“As expected, the ongoing economic downturn and lower selling prices are reflected in our figures,” said Group President & CEO Christian Hartel on Thursday in Munich (pictured). “Our sales and earnings were down on the strong prior-year quarter.” Compared with Q4 2023, the amount of incoming orders rose again. “Our customers have started to replenish their inventories from the recently very low levels. The demand for silicones in particular trended upward in the first quarter,” said Hartel. “But this cannot yet be seen as a distinct sign of a lasting turnaround.”
Wacker is responding to the persistently weak market environment with consistent cost-cutting measures. “We will continue to pursue a restrictive personnel policy, streamline processes and cut non-personnel costs,” explained Hartel. However, the CEO was confident about the medium to long term, adding that Wacker was well positioned strategically and financially. “We remain committed to our 2030 growth targets,” emphasised Hartel, saying that business would be driven by global megatrends such as renewable energy, electromobility, digitalisation and biopharmaceuticals.
Regions
Sales in Q1 2024 across all regions were lower than last year. Sales in Asia totaled €573 million, down 22% on the previous year (€733 million). The Americas saw sales decline 7% in the reporting quarter to €258 million (Q1 2023: €278 million). In Europe, sales amounted to €573 million (Q1 2023: €649 million), corresponding to a decline of 12%.
A more detailed breakdown of Wacker’s Q1 results can be found here.
