Wacker Chemie sticks with profit guidance despite sales boost
Reuters
Published Apr 28, 2022 06:54
Updated Apr 28, 2022 09:31
(Reuters) - German chemicals company Wacker Chemie AG stuck with its full-year core earnings guidance on Thursday, disappointing investors' hopes for an upgrade even as it raised its 2022 sales estimates on the back of higher prices.
The company's shares were down 4% at 0820 GMT.
Wacker reported first-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) of 643.7 million euros ($678.5 million), beating a company-provided consensus forecast of 595.9 million euros.
It also said it expected full-year EBITDA to trend towards the upper end of its guidance range of 1.2-1.5 billion euros.
However, analysts' consensus forecast of 1.54 billion euros is already slightly above that range.
"At the second glance, the main deviation came from the Siltronic contribution in the 'others' line and therefore the underlying Q1 of the core divisions are as expected by the market," Baader Helvea analysts said in a note, referring to Wacker's 30% stake in Siltronic.
The market had expected an increase to EBITDA guidance, they added.
Faced with rising energy costs and disrupted supply chains, chemical companies including Lanxess and Evonik - which also beat quarterly expectations - are passing on higher costs to customers.
Boosted by higher prices, Wacker raised its 2022 sales outlook to about 7.5 billion euros from 7 billion.
"Our growth strategy ... contributes substantially to strengthening Wacker's resilience and ensuring that it remains robust in the face of current macroeconomic challenges," Chief Executive Officer Christian Hartel said.
In March, the company said the direct impact on its volumes from the conflict in Ukraine would be limited as Commonwealth of Independent States countries combined make up less than 2% of Wacker's sales.
($1 = 0.9509 euros)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.