Latest news with #WKCMF
Business Insider
18-06-2025
- Business
- Business Insider
Analysts Offer Insights on Materials Companies: Wacker Chemie AG (OtherWKCMF) and Lynas Rare Earths (OtherLYSCF)
There's a lot to be optimistic about in the Materials sector as 2 analysts just weighed in on Wacker Chemie AG (WKCMF – Research Report) and Lynas Rare Earths (LYSCF – Research Report) with bullish sentiments. Confident Investing Starts Here: Wacker Chemie AG (WKCMF) In a report issued on June 16, Christian Faitz from Kepler Capital maintained a Buy rating on Wacker Chemie AG, with a price target of EUR104.00. The company's shares closed last Monday at $73.00, close to its 52-week low of $63.50. According to Faitz is ranked #915 out of 9621 analysts. Currently, the analyst consensus on Wacker Chemie AG is a Strong Buy with an average price target of $98.34, implying a 34.7% upside from current levels. In a report issued on June 2, Deutsche Bank also maintained a Buy rating on the stock with a EUR74.00 price target. Lynas Rare Earths (LYSCF) UBS analyst Dim Ariyasinghe maintained a Buy rating on Lynas Rare Earths today and set a price target of A$10.40. The company's shares closed last Tuesday at $6.17. According to Ariyasinghe is a 3-star analyst with an average return of 5.3% and a 58.1% success rate. Ariyasinghe covers the Basic Materials sector, focusing on stocks such as Iluka Resources Limited, Syrah Resources, and Boss Energy. Lynas Rare Earths has an analyst consensus of Hold, with a price target consensus of $5.20, representing a -16.1% downside. In a report issued on June 5, Ord Minnett also upgraded the stock to Buy with a A$8.70 price target.
Yahoo
01-05-2025
- Business
- Yahoo
Wacker Chemie AG (WKCMF) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Revenue: EUR1.48 billion, slightly below last year's level but higher than the previous quarter. Group EBITDA: EUR127 million, down from EUR172 million last year. Cumulative EBITDA for Operating Segments: EUR197 million, 3% lower year over year. Chemicals EBITDA: EUR145 million, up 6% year over year. Net Income: Negative EUR3 million, equating to a loss of EUR0.16 per share. Liquidity: EUR923 million. Net Debt: EUR880 million. Silicons Sales: EUR745 million, up 5% year over year. Silicons EBITDA Margin: 14.5%, up from 11.4% a year ago. Polymers Sales: EUR360 million, 3% below last year. Biosolutions Sales: EUR91 million, up 27% year over year. Polysilicon Sales: EUR245 million, 18% lower year over year. Gross Cash Flow: EUR32 million. Warning! GuruFocus has detected 6 Warning Signs with WKCMF. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Wacker Chemie AG (WKCMF) reported a strong start to the year with sales reaching EUR1.48 billion, substantially higher than the previous quarter due to typical seasonality. The chemicals segment saw a 6% year-over-year increase in EBITDA, driven by strong growth in specialty silicon costs. The company is ramping up its new etching line in Burghausen, which will support the next generation of chip production and strengthen its leadership position in the semiconductor industry. Wacker Chemie AG (WKCMF) has initiated nearly 1,000 efficiency projects, yielding net savings of about EUR160 million, demonstrating a strong focus on cost-cutting and efficiency improvements. The company is actively working on sustainability initiatives, including a new global safety initiative and products with a lower carbon footprint, such as renewable raw material-based sealants and low carbon cement binders. Group EBITDA for the first quarter was EUR127 million, significantly lower than last year's EUR172 million, primarily due to weak demand for solar grade polysilicon and construction-related polymers. The company faces considerable risks from international trade relations and potential customs conflicts, which have increased uncertainty and volatility in order intake. Lower utilization rates and weak demand in certain segments, such as construction-related polymers, have negatively impacted financial performance. The potential impacts of a trade war are not included in the company's forecast, adding uncertainty to future financial outcomes. The EBITDA margin for the silicons segment, although improved, remains below target and unsatisfactory, indicating room for further improvement. Q: Could you provide insights on demand trends in your chemical activities during Q1, and how has Q2 started in terms of demand? Also, regarding silicones, your guidance suggests slightly higher margins compared to 2024. Could you clarify what "slightly" means numerically? A: Demand for our specialties in silicon remains strong, but order entry has become more volatile, particularly for standard products. March was slightly weaker than expected, but we anticipate a moderate seasonal uptake in Q2. For silicones, a slight increase in margins could mean an improvement of 1-2 percentage points. We had a strong start in Q1, but we do not expect the same level of performance to continue throughout the year. Q: How is Wacker Chemie adjusting its polysilicon business in response to anti-dumping duties, and what are the dynamics in the silicons business regarding input costs? A: With the final ruling on anti-dumping duties, supply chains are adjusting, with shifts towards countries like Laos and India. We sell at international prices, not at lower domestic prices. In silicons, while a softer upstream market isn't supportive due to high utilization needs, we are focusing on differentiated products. Lower silicon metal and energy costs are positives, but methanol prices are rising. Q: Can you update us on your market share and potential for sales increases in semi-grade polysilicon? Also, how confident are you about demand improvement in the second half of the year? A: We estimate our market share in semi-grade polysilicon at around 50%. Our new etching line in Burghausen will support further growth and potentially increase market share. We expect demand to improve in the second half as the US market remains a premium market for solar applications, driving demand for US-compliant polysilicon. Q: Regarding your silicones business, how is your trade position in North America, and what impact do tariffs have on your operations? A: Most chemicals, including silicones, are exempt from tariffs, minimizing the impact on our operations. We source silicon metal domestically for our US polysilicon production, so tariffs do not significantly affect us. Order entry in silicones has been volatile but not drastically declining, indicating a muted seasonal recovery in Q2. Q: How does the underutilization of infrastructure affect your financials, and is there a disadvantage in having Europe-only production for biosolutions? A: Underutilization in polysilicon affects infrastructure utilization, but other factors like lower equity income and hedging costs also contribute. In biosolutions, we have assets in the US, such as our cyclodextrin business, and regional setup is not a primary concern for project wins, so there's no significant disadvantage. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
21-04-2025
- Business
- Yahoo
Wacker Chemie AG (WKCMF) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strategic ...
Revenue: EUR5.72 billion for 2024, down 11% year over year. EBITDA: EUR763 million, 7% lower year over year. Chemicals EBITDA: EUR542 million, up 11% year over year. Silicones EBITDA: EUR347 million, up 47% year over year. Polymers EBITDA: EUR194 million, down 23% year over year. Biosolutions EBITDA: EUR35 million, up from EUR7 million in 2023. Polysilicon EBITDA: EUR193 million, down 40% year over year. Net Income: EUR261 million, equating to an EPS of EUR4.85. Dividend Proposal: EUR2.50 per share, payout ratio of 52% of EPS. Net Cash Flow: EUR310 million. Net Debt: EUR691 million at year-end 2024. CapEx: EUR666 million in 2024, expected to be slightly above depreciation in 2025. 2025 Revenue Guidance: EUR6.1 billion to EUR6.4 billion. 2025 EBITDA Guidance: EUR700 million to EUR900 million. Warning! GuruFocus has detected 6 Warning Signs with WKCMF. Release Date: March 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Wacker Chemie AG (WKCMF) increased specialty volumes in silicones and polymers despite challenging market conditions. The company set up Europe's latest biotech facility to support German pandemic preparedness programs, indicating a strategic focus on biosolutions. Wacker Chemie AG (WKCMF) reported a strong performance in its Chemicals business, with an 11% year-over-year increase in EBITDA driven by specialty silicones. The company achieved a top A score from the CDP for its sustainability efforts, highlighting its commitment to reducing CO2 emissions. Wacker Chemie AG (WKCMF) maintained its dividend policy, proposing a EUR2.50 per share dividend, equating to a payout ratio of 52% of EPS. Group EBITDA was 7% lower year-over-year, primarily due to challenges in the polysilicon segment. Polysilicon sales were significantly impacted by overcapacities in China and US tariff uncertainties, leading to a 40% year-over-year decline in EBITDA. The company faced a challenging market environment in the construction sector, affecting polymer sales and earnings. Wacker Chemie AG (WKCMF) anticipates a challenging market environment in 2025 with higher risks for trade disputes. The company reported a decline in sales during 2024, primarily due to lower prices and volumes sold in polysilicon. Q: Can you elaborate on the demand increase in silicon specialties and the regions and end markets driving this growth? A: Christian Hartel, CEO: We see demand increase across various segments and regions. Our recent investments in downstream specialty capabilities are now allowing us to leverage and grow the business. Demand is picking up, and we expect additional volumes in 2025. Q: Regarding polysilicon, are there any initiatives by US authorities to address gray imports, and what are your plans if demand recovers? A: Christian Hartel, CEO: US authorities are checking imports, but not at a 100% rate. If demand recovers, our priority is to sell inventory before increasing production. Tobias Ohler, CFO: We would first work down inventory and then increase production once demand picks up. Q: Why is the margin outlook for silicones relatively muted despite a forecasted 10% growth in specialties? A: Tobias Ohler, CFO: We are not seeing a significant turn in pricing yet, and we need to compensate for base cost inflation. Although we are growing in specialties, the standard business remains at low profitability levels. We expect a slight improvement in margins as we are not yet at mid-cycle. Q: Can you provide insights into the semiconductor business growth mentioned in your annual report? A: Christian Hartel, CEO: Our semiconductor growth is based on long-term contractual volumes. We see higher demand from customers this year, supported by our new hedging line coming on stream mid-year. We have contracted customers for this new plant, which contributes to the growth. Q: How much inventory do you have in polysilicon, and is there pressure from auditors to reevaluate it? A: Tobias Ohler, CFO: We are running at demand rate from firm contracts and have inventory in our hubs. We sell inventory at attractive economic rates, and there is no pressure from auditors to reevaluate it. The shelf life of polysilicon is years, allowing us flexibility. Q: What is the outlook for the polymers market, and have there been any changes in the competitive landscape? A: Christian Hartel, CEO: The construction market remains challenging, but we see slightly higher volumes in dispersions and powders with slightly lower prices. Some competitors are more aggressive on pricing, trying to fill capacities, which adds pressure. Q: Can you explain the mix improvement in silicones and its impact on margins? A: Christian Hartel, CEO: We see an improvement in specialty volumes and margins, but we are not yet at mid-cycle margins. Pricing has not turned substantially, and the drag from standard pricing is still visible. There is potential for silicon prices to improve going forward. Q: What are the expectations for the Biosolutions segment, given its current EBIT loss? A: Christian Hartel, CEO: The focus is on filling capacities acquired through past acquisitions. Acquiring projects takes time, and financing challenges for smaller biotechs have slowed the pipeline. The priority is to fill projects and improve profitability. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
