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Wacker Chemie Reports Declining Profits Amid Market Challenges

Wacker Chemie AG has reported a decline in fiscal 2024 results, revealing a drop in net income and earnings per share. Despite weak market conditions, the company forecasts growth in all divisions moving forward.

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AI Rating:   4
Earnings Per Share (EPS) Wacker Chemie reported earnings per share of 4.85 euros, reflecting a steep decline of 23.1% from 6.31 euros the previous year. This significant drop in EPS could indicate that investors may reassess their expectations for the company moving forward. Net Income The company’s net income fell by 20.3%, down to 260.7 million euros from 327.3 million euros, which is another adverse indicator for investors as it highlights diminishing profitability. Sales and Revenue Growth Sales were reported at 5.72 billion euros for fiscal 2024, representing a 10.6% decrease from 6.40 billion euros in the previous year. This decline is primarily attributed to lower prices and decreased volumes in the Polysilicon division, raising concerns about revenue growth. EBITDA The company's EBITDA dipped by 7.4% to 762.8 million euros, down from 823.6 million euros the year before. This decline further emphasizes the impact of reduced prices and high energy costs. In contrast, Wacker Chemie is anticipating a more promising outlook for the future, expecting sales ranging between 6.1 billion euros and 6.4 billion euros for the year ahead, with annual EBITDA projected to be between 700 million euros and 900 million euros. Their plan to maintain a dividend of 2.50 euros per share could provide some reassurance to investors. However, the continuing weak market conditions remain a concern. Overall, potential investors should weigh the negative aspects of the reported results against the optimistic projections for future growth as indicated by the company.
Stocks:  WKCMY