Comparing Actual with Forecast Performance

At the start of 2023, WACKER forecast full-year sales of between €7.0 billion and €7.5 billion. The EBITDA margin was expected to be much lower than the previous year, while EBITDA was forecast at between €1.1 billion and €1.4 billion. ROCE would be higher than the cost of capital, but substantially lower than the year before. Net cash flow was expected to be positive, though clearly below the previous year. Capital expenditures would reach around €650 million, with depreciation and amortization amounting to around €450 million. WACKER expected to post a small net financial debt in 2023.

WACKER Lowers Full-Year Forecast

On July 18, 2023, WACKER published its preliminary figures for the second quarter. At the same time, the company revised its guidance for 2023 on the basis of current estimates.

WACKER lowered its forecast for Group sales. It now predicted sales of between €6.5 billion and €6.8 billion (previous guidance: between €7 billion and €7.5 billion). Full-year EBITDA should now reach between €800 million and €1.0 billion (previous guidance: between €1.1 billion and €1.4 billion). Expectations for the EBITDA margin were not revised: it would be substantially lower than the previous year. ROCE was now projected to be below the cost of capital (previous guidance: above the cost of capital, albeit considerably lower than the year before). The full-year forecast for capital expenditures, net cash flow, net financial debt and depreciation/amortization remained unchanged.

WACKER Closes 2023 Below Previous Year

WACKER saw its year-over-year sales and earnings decline significantly in 2023 due to the ongoing weak market environment. Sales totaled €6.40 billion (2022: €8.21 billion), down 22.0 percent year over year. This decline was prompted primarily by lower prices and volumes. Negative exchange-rate effects also impacted sales performance. EBITDA came in at €0.82 billion, 60.4 percent lower year over year (2022: €2.08 billion). This was due to lower prices along with persistently high energy costs and reduced plant-utilization rates as a result of the decline in sales volumes. By contrast, savings from the Group’s ongoing efficiency program buoyed EBITDA. At 12.9 percent, the EBITDA margin was substantially lower than the previous year (2022: 25.4 percent).

Net cash flow totaled €165.6 million in 2023 (2022: €438.8 million). The main reasons for the decline were lower earnings and higher capital expenditures. At 6.9 percent, ROCE was substantially lower than the cost of capital.

Capital expenditures amounted to €709.6 million in 2023 (2022: €546.8 million), well above the prior-year figure.

At year-end, WACKER recognized net financial debt of €83.7 million (2022: net financial assets of €409.2 million).