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    WCH   DE000WCH8881

WACKER CHEMIE AG

(WCH)
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PRESS RELEASE: Wacker Chemie AG: WACKER's Sales and Earnings Rise in Q1 2021

04/30/2021 | 04:19am EDT
DGAP-News: Wacker Chemie AG / Key word(s): Quarterly / Interim Statement 
Wacker Chemie AG: WACKER's Sales and Earnings Rise in Q1 2021 
2021-04-30 / 07:00 
The issuer is solely responsible for the content of this announcement. 
=---------------------------------------------------------------------------------------------------------------------- 
  . GROUP SALES FOR Q1 2021 REACH EUR1.36 BILLION, UP 14 PERCENT YEAR OVER YEAR AND 10 PERCENT QUARTER OVER QUARTER 
  . AT EUR246 MILLION, EBITDA IS UP 42 PERCENT YEAR OVER YEAR AND 26 PERCENT QUARTER OVER QUARTER, CHIEFLY DUE TO 
    SUBSTANTIALLY HIGHER VOLUMES 
  . NET INCOME FOR Q1 AMOUNTS TO EUR107 MILLION 
  . NET CASH FLOW REACHES EUR131 MILLION 
  . FULL-YEAR FORECAST RAISED: GROUP SALES FOR 2021 EXPECTED TO GROW BY A LOW-DOUBLE-DIGIT PERCENTAGE, WITH EBITDA 
    LIKELY TO RISE BY 15 TO 25 PERCENT VERSUS LAST YEAR 
Munich, April 30, 2021 - Wacker Chemie AG finished Q1 2021 with significant growth in sales and earnings. The 
Munich-based chemical company generated sales of EUR1,359.6 million in the reporting quarter. That was 14 percent higher 
than in the same period last year (EUR1,197.5 million). Relative to the preceding quarter (EUR1,239.2 million), sales were 
up 10 percent, chiefly due to high demand in nearly all divisions. Business in construction materials and polysilicon, 
for example, was especially strong. Higher prices, particularly for solar-grade polysilicon, also lifted sales. On the 
other hand, exchange-rate effects resulting from the weaker US dollar year over year slowed sales somewhat. 
In Q1 2021, WACKER posted EBITDA (earnings before interest, taxes, depreciation and amortization) of EUR246.4 million. 
That was 42 percent higher than in the same period last year (EUR174.1 million). Relative to the preceding quarter 
(EUR196.0 million), EBITDA climbed 26 percent. This strong growth stemmed from higher volumes and, in some segments, 
better prices, as well as from overall higher plant utilization rates. The Group's ongoing efficiency program reduced 
costs, which also had a positive impact on EBITDA. The company encountered headwinds, however, from markedly higher 
raw-material prices both year over year and quarter over quarter. The EBITDA margin for January through March 2021 was 
18.1 percent, compared with 14.5 percent in the same period last year. In the prior quarter, the EBITDA margin was 15.8 
percent. 
Group earnings before interest and taxes (EBIT) also rose markedly year over year due to the factors already mentioned, 
coming in at EUR154.9 million (Q1 2020: EUR69.8 million). This was more than double the year-earlier figure and 
corresponded to an EBIT margin of 11.4 percent (Q1 2020: 5.8 percent). Net income totaled EUR106.6 million in the 
reporting quarter (Q1 2020: EUR68.9 million), corresponding to earnings per share of EUR2.06 (Q1 2020: EUR1.31). 
WACKER revised upward the full-year 2021 forecast published in its Annual Report for 2020. Despite the continued risks 
connected with the coronavirus pandemic which are clearly evident in currently dynamic developments in India and 
Brazil, for example and even higher raw-material prices which are estimated to have a full-year impact of over EUR200 
million, WACKER now expects to post somewhat stronger numbers than forecast at the beginning of the year. The company 
expects Group sales to exceed the previous year's figure of EUR4,692.2 million by a low-double-digit percentage. WACKER 
had previously expected sales growth in the mid-single-digit percentage range. According to current projections, EBITDA 
is likely to increase by 15 to 25 percent versus last year's figure (EUR666.3 million). The company had expected growth 
of 10 to 20 percent when presenting its 2020 Annual Report. 
"WACKER performed very well in Q1 2021," CEO Rudolf Staudigl said in Munich on Friday. "The best defenses against the 
coronavirus pandemic have proven to be our strong strategic focus on specialty chemical products that provide high 
added value for our customers, our quality leadership for polysilicon and the expansion of our biotechnology business. 
In particular, demand for polysilicon for solar and semiconductor applications has been on a very positive trajectory 
in the past months. Higher prices for solar-grade polysilicon have also helped our business. We expect prices to remain 
stable in the coming months." 
The CEO was also positive about the chemical divisions, which struggled with higher raw-material prices in some cases: 
"In the silicones market there was strong demand for our products. Here we are benefiting in particular from our 
business in high-margin specialties, which we have been continuously expanding for several years. In the past months, 
we were able to achieve significantly higher volumes for polymer products, especially in Asia." Bioengineered products 
had also performed well, according to Staudigl: "In this area we benefited above all from strong demand for 
biopharmaceuticals." 
Regions 
In Q1 2021, WACKER's sales in the Americas decreased to EUR203.8 million, 12 percent less than the same quarter last year 
(EUR231.1 million). In Asia, on the other hand, Group sales increased 39 percent in the reporting quarter to EUR536.0 
million (Q1 2020: EUR385.8 million). Sales in Europe totaled EUR546.4 million (Q1 2020: EUR520.9 million), up 5 percent. 
Capital Expenditures and Net Cash Flow 
In Q1 2021, the Group's capital expenditures came in at EUR42.0 million (Q1 2020: EUR44.4 million), a decline of 5 percent 
year over year. The funds went primarily toward expanding capacities at the chemical divisions. 
Net cash flow increased to EUR131.1 million in Q1 2021 (Q1 2020: EUR22.6 million). This was due primarily to earnings 
growth. 
Employees 
WACKER's global workforce increased slightly in the reporting quarter. The Group had 14,332 employees on March 31, 2021 
(Dec. 31, 2020: 14,283). At the end of the quarter, 10,041 employees (Dec. 31, 2020: 10,096) worked at WACKER sites in 
Germany and 4,291 (Dec. 31, 2020: 4,187) at international locations. 
Business Divisions 
In Q1 2021, WACKER SILICONES generated total sales of EUR612.8 million. That was 4 percent higher than in the same period 
last year (EUR590.0 million). Higher volumes and an improved product mix had a positive impact on sales. Compared with a 
quarter earlier (EUR573.3 million), the division's sales rose 7 percent. EBITDA at WACKER SILICONES reached EUR122.0 
million in the reporting quarter, 3 percent higher than a year ago (EUR118.6 million). Relative to the preceding quarter 
(EUR110.6 million), EBITDA climbed 10 percent. Reporting-quarter earnings were lifted not only by high volumes, but also 
by very high plant utilization rates. The EBITDA margin for Q1 2021 was 19.9 percent, after 20.1 percent in Q1 2020 and 
19.3 percent in the preceding quarter. 
Sales at WACKER POLYMERS totaled EUR350.1 million in the reporting quarter, 6 percent higher than a year earlier (EUR330.8 
million). Higher volumes for dispersions and dispersible polymer powders, especially in Asia, were the main drivers of 
this growth. Sales were also up 6 percent relative to the preceding quarter (EUR329.8 million). The division's EBITDA 
came in at EUR49.5 million in Q1 2021, after EUR61.5 million a year earlier - a decline of 20 percent year over year. 
Higher raw-material prices were primarily responsible for this decrease. On the other hand, high plant utilization 
rates had a positive impact on EBITDA. Compared with the preceding quarter (EUR65.0 million), EBITDA decreased by 24 
percent. Again, substantially higher raw-material prices were the main reason for this earnings decline. To counteract 
this trend, the business division raised its product prices worldwide in mid-March. The EBITDA margin was 14.1 percent 
in Q1 2021, after 18.6 percent a year earlier and 19.7 percent a quarter ago. 
WACKER BIOSOLUTIONS posted total sales of EUR67.7 million in Q1 2021, up 7 percent over a year earlier (EUR63.3 million). 
Compared with the preceding quarter (EUR62.7 million), sales increased 8 percent. Cyclodextrins, cysteine and 
biopharmaceuticals performed particularly well during the quarter. WACKER BIOSOLUTIONS posted EBITDA of EUR6.2 million in 
the reporting quarter, down 27 percent from a year earlier (EUR8.5 million). This decline was partly attributable to 
expenses for integrating the new biopharma site in San Diego that WACKER acquired in February, as well as start-up 
costs for vaccine production at WACKER's Amsterdam site. Compared with a quarter ago (EUR5.8 million), EBITDA increased 7 
percent. The EBITDA margin was 9.2 percent, after 13.4 percent a year earlier and 9.3 percent in Q4 2020. 
WACKER POLYSILICON generated total sales of EUR298.3 million in the reporting quarter. That was 62 percent more than a 
year ago (EUR184.3 million) and 22 percent higher versus the preceding quarter (EUR244.1 million). This strong growth was 
due primarily to increased volumes and higher average selling prices for solar-grade polysilicon. Reporting-quarter 
EBITDA at WACKER POLYSILICON came in at EUR51.0 million. That was EUR64.7 million more than in the same period last year 
(EUR-13.7 million). This increase was due not only to significantly higher sales, but also to further progress in 
reducing the cost of goods sold. Compared with a quarter earlier (EUR45.5 million), EBITDA increased 12 percent. Positive 
volume and price effects were still dampened in the reporting quarter by the negative impact of inventory reduction. 
The division's EBITDA margin was 17.1 percent for January through March 2021, after -7.4 percent in Q1 2020 and 18.6 
percent in Q4 2020. 
Outlook 
WACKER detailed its projections for the Group's performance this year in the Outlook section of its 2020 Annual Report. 
In view of the positive business trend in the first quarter and its current business performance, WACKER has raised its 
annual forecast for sales and EBITDA. It aims to lift its sales in 2021 by a low-double-digit percentage. WACKER had 

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DJ INDUSTRIAL 1.06% 34382.13 Delayed Quote.11.16%
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Financials
Sales 2021 5 320 M 6 456 M 6 456 M
Net income 2021 744 M 903 M 903 M
Net cash 2021 912 M 1 107 M 1 107 M
P/E ratio 2021 7,85x
Yield 2021 2,40%
Capitalization 6 274 M 7 615 M 7 615 M
EV / Sales 2021 1,01x
EV / Sales 2022 1,04x
Nbr of Employees 14 283
Free-Float 28,8%
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Mean consensus OUTPERFORM
Number of Analysts 16
Average target price 132,00 €
Last Close Price 126,30 €
Spread / Highest target 26,7%
Spread / Average Target 4,51%
Spread / Lowest Target -28,7%
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Managers and Directors
NameTitle
Christian Hartel President & Chief Executive Officer
Peter-Alexander Wacker Chairman-Supervisory Board
Matthias Biebl Member-Supervisory Board
Franz-Josef KortŘm Member-Supervisory Board
Susanne Weiss Member-Supervisory Board
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