Published by Global Banking and Finance Review
Posted on March 12, 2025
(Reuters) -Germany's Wacker Chemie said 2025 sales were likely to increase from last year thanks to a surge in volumes, especially in silicone products and semiconductor-grade polysilicon, albeit at slightly lower selling prices.
As tech products become more complex, the need for highly specialised products such as Wacker's silicones grows, CEO Christian Hartel said during a press conference on Wednesday.
"Our material makes AI possible," Hartel added. "One in two computer chips worldwide contain polysilicon from Wacker."
The Munich-based company said demand for speciality silicone products and semiconductor-grade polysilicon continued to show a very positive development, and volumes of those products would thus grow also in 2025.
Wacker forecast annual sales of 6.1 billion to 6.4 billion euros ($6.65 billion to $6.98 billion), up from 5.72 billion euros in 2024.
The speciality chemicals producer sees yearly earnings before interest, taxes, depreciation and amortisation (EBITDA) of between 700 million and 900 million euros, versus 763 million last year.
However, the environment will remain challenging, Hartel said, as the weak economy continues to influence the order patterns of many customers.
Germany's chemicals association VCI said on Wednesday it expected 2025 to be further impacted by geopolitics and the weak economic environment, with sector recovery not expected before next year.
Wacker's management was nevertheless optimistic about future growth, largely driven by advancements in the technology sector, and forecast 2025 sales growth of around 10% for the silicones division.
Annual sales of the polysilicon business were seen between 1.0 billion and 1.3 billion euros, up from 949 million in 2024, through much higher semiconductor-grade polysilicon volumes.
Hartel said Wacker had a "natural hedge" against U.S. import duties as it manufactures most of its products locally. In cases where imports end up costing more, it will pass those expenses onto the customer, he added.
Wacker will propose a dividend of 2.50 euros per share for the year, it said.
($1 = 0.9172 euros)
(Reporting by Antonis Pothitos in Gdansk; Editing by Christopher Cushing, Tomasz Janowski and Milla Nissi)
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