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• Group Sales: EUR1.4 billion, down 6% year-over-year.

• Group EBITDA: EUR152 million, unchanged year-over-year.

• Chemicals EBITDA: EUR155 million, up 23% year-over-year.

• Specialty Silicones Sales: Markedly higher than the previous year.

• Specialty Silicones EBITDA: EUR109 million, 2 times higher than a year ago.

• Polymers EBITDA: EUR46 million, declined quarter-on-quarter.

• Biosolutions Sales: EUR100 million, up 29% year-over-year.

• Polysilicon Sales: EUR209 million, 39% lower year-over-year.

• Net Income: EUR34 million.

• Earnings Per Share: EUR0.56.

• Net Debt: EUR772 million.

• Gross Cash Flow: EUR52 million.

• Investment in Inventory: Approximately EUR250 million.

• Cash Flow from Investing Activities: EUR457 million.

• Warning! GuruFocus has detected 5 Warning Sign with BMRC.

Release Date: October 28, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Wacker Chemie AG (WKCMF) achieved a strong result in its specialty business despite challenging market conditions.

• Chemicals EBITDA increased by 23% year-over-year, with specialty silicones sales markedly higher than the previous year.

• The new biopharma site in Halle provides a strong foundation for future growth in the biosolutions segment.

• The company is committed to sustainability, targeting net zero by 2045, and has made progress in reducing CO2 emissions.

• Wacker Chemie AG (WKCMF) maintains a strong balance sheet with EUR1 billion in liquidity and EUR4.6 billion in shareholder equity.

Negative Points

• Group sales decreased by 6% year-over-year, driven by significantly lower solar-grade polysilicon volumes.

• Demand remains weak in key sectors such as construction and automotive, impacting overall performance.

• Polymers EBITDA declined quarter-on-quarter due to a supplier force majeure and sluggish demand in Europe and China.

• The ongoing uncertainty in the solar market, particularly due to antidumping investigations, affects polysilicon sales.

• The company's EBITDA margin targets in chemicals and biosolutions are not yet met, indicating room for improvement.

Q & A Highlights

Q: Are the current silicones margins the maximum achievable given the economic environment, or is there potential for improvement in 2025? A: Tobias Ohler, CFO, explained that while the third quarter showed improvement, margins are not yet at target levels. The company expects a low double-digit margin for the full year, with potential for further improvement as they focus on specialty volumes and better plant loading.

Q: Can you elaborate on the growth expectations for the semiconductor business as the new plant ramps up? A: Christian Hartel, CEO, stated that the new plant is progressing well, with significant volumes already under contract. The ramp-up will depend on customer qualification times, but the plant is a key part of their semiconductor growth strategy.