 Home > Coatings News > Paints and Coatings Market > WACKER sales top 2 billion euros for the first time in the first quarter of 2022, EBITDA more than doubles from the previous year

WACKER sales top 2 billion euros for the first time in the first quarter of 2022, EBITDA more than doubles from the previous year

 Last Update: 2022-05-09
 Source: Internet
 Author: User

Tags

bms 5 45

15 2 simplified

Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com

WACKER's sales in the first quarter of 2022 amounted to 2.
EBITDA increased to EUR 644 million, more than double the previous year and an increase of 26% sequentially, thanks to higher product prices and favorable product mix effects
Net profit for the period in the first quarter was EUR 403 million
Increased working capital and payment of equity participation transaction to specialty silane manufacturer Shandong Siike reduces net cash flow to EUR 18 million
Sales forecast raised: Group sales are expected to reach around EUR 7.

WACKER's sales in the first quarter of 2022 amounted to 2.

EBITDA increased to EUR 644 million, more than double the previous year and an increase of 26% sequentially, thanks to higher product prices and favorable product mix effects

Net profit for the period in the first quarter was EUR 403 million

Increased working capital and payment of equity participation transaction to specialty silane manufacturer Shandong Siike reduces net cash flow to EUR 18 million

Sales forecast raised: Group sales are expected to reach around EUR 7.

WACKER achieves earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 644 million in the first quarter of 2022, operating profit more than doubled compared to the same period last year (EUR 258 million), and EBITDA increased by 26% compared with the previous quarter (EUR 510 million)

Driven by the above factors, the Group's EBIT also increased significantly, achieving EUR 550 million during the reporting period, more than three times that of the same period last year (EUR 166 million), with an EBIT margin of 26.

WACKER has now raised its forecast for full-year 2022 sales

Christian Hartel, President and CEO of WACKER, said in Munich on Thursday: “Despite the current major unrest and pressures in the world economy, WACKER will once again achieve successful growth in the first quarter of 2022.

However, Heda also said that WACKER will also face strong headwinds in the remaining months of the year due to sharp increases in energy and raw material prices, saying: "In the Silicones and Polysilicon business unit in particular, we were able to benefit at the beginning of the year from the previous year.

Heda is full of confidence in the WACKER Group's medium-term development, saying: "We are determined to accelerate our growth rate in the next few years and are actively paving the way for this

Heda emphasized: "Based on high customer demand, we are entering a growth period

area

WACKER saw significant sales growth across all regions in the first quarter of 2022

Capital Expenditure and Net Cash Flow

WACKER's capital expenditure in the first quarter of 2022 was EUR 84 million, double the level of EUR 42 million in the same period of the previous year
.
Investments are focused on expanding silicone capacity, as well as expanding polymer and biologics products
.

The group's net cash flow in the first quarter of 2022 was EUR 18 million (Q1 2021: EUR 131 million)
.
In addition to a significant increase in working capital due to higher sales, the amount paid for the acquisition of a 60% stake in Shandong Siike New Materials Co.
, Ltd.
, a Chinese specialty silane manufacturer, also had an impact on lower net cash flow
.
The Munich-based chemical group announced the signing of the agreement at the end of October last year, and the payment of about 165 million euros includes the purchase price and prorated working capital
.
WACKER's stake in Shandong Silicon Co.
, Ltd.
will further expand its portfolio of high-end specialty products in Asia
.
The transaction is expected to close in the second quarter of 2022
.

Employee

The number of WACKER employees worldwide increased slightly during the reporting period
.
As of March 31, 2022, WACKER had 14,595 employees (December 31, 2021: 14,406)
.
As of the end of the reporting period, the total number of WACKER employees in Germany was 10,111 (December 31, 2021: 10,006), and the total number of employees outside Germany was 4,484 (December 31, 2021: 4,400)
.

business unit

In the first quarter of 2022, WACKER SILICONES achieved sales of EUR 921 million, a 50 percent increase over the same period last year (EUR 613 million)
.
Higher silicone prices and favorable product mix effects were the main reasons for this growth
.
The increase in sales volume and exchange rate fluctuations also contributed to the sales development
.
Sales in this business unit increased by 40% compared to the previous quarter (657 million euros)
.
WACKER SILICONES achieved EBITDA of EUR 279 million, more than double the previous year (EUR 122 million) or the previous quarter (EUR 137 million)
.
In addition to higher sales, the utilization rate of production equipment is extremely high, and the positive effect brought by the purchase of raw materials at better prices in the previous year also played a role in promoting EBITDA
.
The business unit's EBITDA margin in the first quarter of 2022 was 30.
3%, compared to 19.
9% a year earlier and 20.
8% in the previous quarter
.

WACKER POLYMERS achieved sales of EUR 518 million in the reporting period, an increase of 48 percent compared to the same period last year (EUR 350 million)
.
Higher prices and a favorable product mix were the main drivers for this growth
.
Compared with the previous quarter (451 million euros), sales increased by 15%
.
WACKER POLYMERS achieved EBITDA of EUR 93 million in the first quarter of 2022 (previous year: EUR 50 million), an increase of 86 percent year-on-year
.
Higher prices of dispersible polymer powders and emulsions were the main reasons for the increase in profits, and high utilization of production equipment also played a role in promoting EBITDA
.
On the contrary, the surge in raw material and energy prices has greatly suppressed the development of EBITDA
.
Compared to the previous quarter (€66 million), EBITDA achieved an increase of 41%
.
EBITDA margin for the first quarter of 2022 was 17.
9%, compared to 14.
1% a year earlier and 14.
7% in the previous quarter
.

In the first quarter of 2022, WACKER Biotechnology achieved sales of EUR 77 million, an increase of 13% compared to the same period last year (EUR 68 million) and a decrease of 4% compared to the previous quarter (EUR 80 million), mainly due to Burger The shutdown of a production line at the Hansoh production site has affected the production of important upstream products for this business unit
.
EBITDA for the WACKER Biotechnology business unit for the reporting period was -0.
4 million euros, a decrease of EUR 6.
6 million compared to the same period last year (EUR 6.
2 million) and a decrease of EUR 10.
2 million compared to the previous quarter (EUR 9.
8 million)
.
In addition to the outage of the aforementioned equipment at the Burghausen site, integration costs at the San Diego site in the United States also had a negative impact on profits
.
EBITDA margin was -0.
5%, compared to 9.
2% a year earlier and 12.
3% in the fourth quarter of 2021
.

WACKER POLYSILICON achieved sales of EUR 525 million in the reporting period, an increase of 76 percent compared to the same period last year (EUR 298 million) and a 12 percent increase over the previous quarter (EUR 470 million)
.
Higher product prices are the main reason behind this substantial increase
.
Among them, the price of polysilicon for solar cells has risen particularly significantly, and the price of polysilicon for semiconductors has also risen
.
WACKER POLYSILICON achieved EBITDA of EUR 225 million in the reporting period, more than four times the level of the previous year (EUR 51 million)
.
In addition to the sharp rise in prices, further reductions in production costs also contributed to this growth
.
Compared to the previous quarter (256 million euros), EBITDA was down 12%
.
The surge in energy and feedstock prices contributed to the loss of EBITDA, which was not fully offset by a slight increase in sales volumes and overall polysilicon prices
.
EBITDA margin for January-March 2022 was 42.
7%, 17.
1% in the first quarter of 2021, and 54.
5% in the fourth quarter of 2021
.

Foresight

In its 2021 annual report, WACKER detailed its forecast for the group's business development this year
.
WACKER raised its upward revision despite major uncertainties over the future direction of the world economy, particularly the conflict between Israel and Ukraine, the unresolved COVID-19 pandemic, and the possible impact of a surge in global inflation on consumer buying behavior.
forecasted sales for the current year
.

WACKER expects sales in fiscal 2022 to be around 7.
5 billion euros (previously forecast: around 7 billion euros) and reiterates its EBITDA forecast, which is still between 1.
2 billion and 1.
5 billion euros
.
Here, higher energy and raw material prices are expected to lead to a loss of profit of around 1.
1 billion euros (previously forecast: around 1 billion euros), but this part of the cost burden can be largely offset by higher product prices
.
Both the EBITDA margin and the Group's full-year profit are expected to be significantly lower than the previous year due to inflation
.
Capital expenditures will rise sharply to between 550 million and 600 million euros
.
Both net cash flow and net financial assets are expected to remain in substantial surplus
.

WACKER GROUP FINANCIAL DATA

WACKER has now placed Siltronic AG and GlobalWafers Co.
, Ltd.
in its fiscal 2021 report as part of the semiconductor manufacturing The equity (30.
83%) held by Shangshichuang Electronics has been changed from holding assets for sale to investments in affiliated companies that are accounted for by the equity method.
Any impact on the data for the first quarter of 2022 has been reported in this quarterly report.
make corresponding adjustments
.
WACKER has now placed Siltronic AG and GlobalWafers Co.
, Ltd.
in its fiscal 2021 report as part of the semiconductor manufacturing The equity (30.
83%) held by Shangshichuang Electronics has been changed from holding assets for sale to investments in affiliated companies that are accounted for by the equity method.
Any impact on the data for the first quarter of 2022 has been reported in this quarterly report.
make corresponding adjustments
.

This press release contains forecasts for the future, which are based on estimates by the WACKER Group leadership
.
Although the Company believes that these predictions will be realized, there is no guarantee that they will become reality
.
As an opinion, there are potential risks and uncertainties
.
These risks and uncertainties can cause substantial deviations between actual events and projections
.
Factors causing these deviations include, but are not limited to: changes in economic and business conditions, exchange rate and interest rate fluctuations, the emergence of competing products, low market acceptance of new products or services, and changes in business strategies, among others
.
WACKER has no plans to update forward-looking statements and undertakes no such obligation
.
This press release contains forecasts for the future, which are based on estimates by the WACKER Group leadership
.
Although the Company believes that these predictions will be realized, there is no guarantee that they will become reality
.
As an opinion, there are potential risks and uncertainties
.
These risks and uncertainties can cause substantial deviations between actual events and projections
.
Factors causing these deviations include, but are not limited to: changes in economic and business conditions, exchange rate and interest rate fluctuations, the emergence of competing products, low market acceptance of new products or services, and changes in business strategies, among others
.
WACKER has no plans to update forward-looking statements and undertakes no such obligation
.

This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.