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Wacker Chemie plans savings: annual outlook sharply lowered!
Wacker Chemie lowers its 2025 outlook due to weak demand and geopolitical uncertainties. Sales forecast falls significantly.
Wacker Chemie plans savings: annual outlook sharply lowered!
Wacker Chemie has revised down its annual outlook for 2025, citing weak demand and several external factors. CEO Christian Hartel attributes the adjustment to macroeconomic and geopolitical uncertainties. In addition, the appreciation of the euro against the US dollar is putting additional strain on the company. Yahoo Finance reports that Wacker Chemie shares fell by around one percent as a result of this announcement.
The company's new forecasts expect group sales of between 5.5 and 5.9 billion euros. Previously, expectations were between 6.1 and 6.4 billion euros. The estimate for earnings before interest, taxes, depreciation and amortization (Ebitda) has also been reduced and is now expected to be between 500 and 700 million euros. This is a significant decrease compared to the target of 700 to 900 million euros.
Market developments and impacts
Another challenge is the weak development in the solar silicon business. The company has had to revise its expectations of a recovery in demand in the current year, which has so far failed to materialize. Concerns about the construction industry, which is proving to be sluggish, are also having a negative impact on Wacker Chemie's polymer division. Stock market news highlights that sales in the second quarter fell by around four percent to 1.41 billion euros and operating profit fell by over a quarter to 114 million euros.
The polysilicon business is also under pressure from overcapacity in China, while at the same time discussions about possible anti-dumping tariffs by the USA against solar product imports from Southeast Asia are weighing on the market. These factors lead to a bleak outlook for Wacker Chemie, which plans to make cuts in polysilicon.
The chemicals sector as a whole is facing similar challenges, as other companies such as BASF and Covestro have also lowered their forecasts. However, market expectations for Wacker Chemie are in the upper ranges of the new ranges, which could reflect some hope for stabilization.