Published by Global Banking and Finance Review
Posted on January 28, 2025
(Reuters) - German chemical company Wacker Chemie reported a 7% fall year-on-year in its annual core profit on Tuesday, citing lower prices and sales volumes, particularly for solar-grade polysilicon, as well as high energy costs in Germany.
The specialty chemicals maker's preliminary earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2024 declined to 770 million euros ($803.96 million) from 824 million euros a year earlier but beat the 753.1 million euros expected by analysts in a company-provided poll.
It added that its preliminary 2024 sales reached 5.72 billion euros, down 11% from 2023.
"The economic environment in 2024 was challenging. We faced persistent weak demand in many of our customer sectors, with many of our customers in the construction and automotive industries, in particular, curbing their production," CEO Christian Hartel said in a statement.
The polysilicon division's sales plunged 41% compared to 2023, impacted by weakening demand for solar-grade polysilicon and the sustained excess capacity in China, according to Hartel.
He noted that the debate surrounding U.S. anti-dumping tariffs on solar imports from some Southeast Asian countries unsettled the markets.
By contrast, the hyperpure semiconductor-grade polysilicon business "performed well", the company said, adding that it is aiming to increase the share of hyperpure polysilicon in the semiconductor industry going forward.
The Munich-based chemical group also said the chemical divisions achieved sales at the previous year's level with total earnings exceeding the 2023 figure. Sales and earnings in the biotechnology division were also up year-on-year, it added.
($1 = 0.9578 euros)
(Reporting by Antonis Pothitos in Gdansk; Editing by Sonali Paul and Janane Venkatraman)
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