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Research Tree provides access to ongoing research coverage, media content and regulatory news on WACKER CHEMIE AG. We currently have 8 research reports from 1 professional analysts.
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WACKER CHEMIE AG
WACKER CHEMIE AG
'Chemicals' strong profitability continues
01 Feb 17
Wacker reported a set of preliminary figures, which were at the profitability line much stronger than expected. FY sales were up +2% to €5.4bn and EBITDA increased +5% to €1.1bn. Net profit dropped from €242m to €190m. The FY report is due to be published on 14 March 2017.
Weaker top line, but profitability strongly increased
28 Oct 16
Q3 sales slightly weakened 1% to €1,346m (v: +2%, p. -4%, +1%) and the gross profit margin moved 90bp down to 21.1%. EBITDA went up +14% to €301m and net profit attributable to shareholders rose +7% to €64m. Operating CF jumped +57% to €297m primarily driven by higher D/A and a swing in NWC (€15m after €-31m). Investing CF (€-177m after €-283m) saw a lower capex outflow as the Tennessee site is now ramping up production and investments in securities moved up +16% to €-71m. Financing CF fully reflected the development in financial liabilities (€-35m after €-54m). Based on the strong ‘chemicals’ performance, management continues to expect group sales to increase by a low single-digit percentage and sees EBITDA at the upper end of the 5-10% range, when adjusted for special income. Net income is seen markedly lower. However, management now targets the upper end of given guidance.
Strong ‘chemicals’ trigger guidance update
28 Jul 16
Wacker’s sales was slightly up (+1% to €1,386m) in Q2, but the gross profit margin (18.8% after 21.7%) partly suffered from the lower prices related to cheaper raw material prices. EBITDA weakened (-9% to €300m), due to lower positive one-offs and net profit attributable to shareholders nearly halved (-48% to €57m). Operating CF increased 23% to €172m, clearly helped by a lower NWC outflow (€-62m after €-110m). Investing CF (€-190m after €-223m) benefited from lower capex and investments despite some higher acquisitions of securities. Financing CF swung from €246m to €-89m, primarily due to the lack of the €362m income from the change in ownership in Siltronic. Based on the strong ‘chemicals’ performance, management continued to expect group sales to increase by a low single-digit percentage (unchanged) and sees EBITDA at the upper end of the 5-10% range (in this range), when adjusted for special income. Net income is seen markedly lower (substantially).
Prices and D/A burdens profitability
28 Apr 16
Q1 sales came in 2% lower at €1,314m due to lower polysilicon and silicon-wafer prices (prices: -4%). Gross profit margin melted down from 21.8% to 16.7%, partly absorbing the start-up costs for the Charleston plan. The group’s EBITDA clearly dropped 14% to €229m due to the lower contributions from Polysilicon and Siltronic. Net income attributable to shareholders fell off the cliff (€20m after €70m). Due to the weaker operating performance, operating CF moved down 17% to €136m, despite some higher depreciation and lower NWC outflow. Investing CF (€-212m after €-129m) was hit by a swing from net proceeds (€60m) to net acquisition (€-24m) of securities. By contrast, financing CF swung from net repayment of liabilities (€-114m) to net proceeds (€199m). Management provided some hard figures for 2016, now expecting group sales to increase by a low single-digit percentage (slightly higher) and EBITDA to move up by 5-10% (slight increase), when adjusted for special income. Net income is seen substantially lower (unchanged).
Cautious, but realistic into 2016
17 Mar 16
Having posted preliminary figures in early February, the annual report gave some additional information. In 2015, sales rose +10% to €5,296m and the gross profit margin improved from 17.5% to 21.3%. EBITDA came in fairly unchanged at €1,042m and net profit attributable to shareholders increased strongly moving up +21% to €247m. Operating CF jumped +275% to €617m reflecting the better operating performance and was additionally helped by lower a NWC outflow (€-169m after €-257m). Investing CF moved from €-506m to €-691m whereas financing CF swung from €-89m to €58m driven by the proceeds from the change in ownership interests in Siltronic, which were partly eaten up by the higher net cross debt repayments (€-220m after €-52m). Management is to propose a +33% higher dividend (€2.00 after €1.50) per share at the AGM on 20 May 2016. For 2016, management expects slightly higher sales and a slight EBITDA increase, when adjusted for special income. Net income is seen substantially lower.
27 Feb 17
Treatt has yet again beaten expectations by delivering an exceptionally strong start to FY17 despite Q1 typically being a seasonally weak quarter. The success is across the board and has led to a surprise trading statement (23 February). We upgrade our forecasts to reflect the strong sales growth and also the margin improvement as Treatt moves further up the value chain. Our fair value increases to 350p (from 293p) as a result.
Suffering CropScience, operating CF’s tide is high
22 Feb 17
Bayer reported +2% (organic: +4%) higher sales at €46,769m and the gross profit margin improved from 54.4% to 56.6% in 2016. EBITDA rose +13% to €10,785m and net profit attributable to shareholders came in at €4,531m, up by +10%. Operating CF (+32% to €9,089m) benefited from the good operating basis and higher D/A (+12%), but the significantly lower NWC outflow (€-149m after €-817m) and the contribution from discontinued operations (Diabetes Care and CS Consumer) were the afterburner. Investing CF reflects the company’s willingness to hoard cash for the Monsanto takeover as it moved from €-2,762m to €-8,729m, primarily due to the outflows for current financial assets (€-5,645m after €-344m). Financing CF (€-350m after €-3,974m) saw a strong inflow from capital contributions and lower net gross debt repayments (€-730m after €-2,929m). Management will propose a +8% higher dividend of €2.70 (€2.50) per share at the AGM on 28 April 2017. Management gave a detailed 2017 guidance and expects sales to increase to over €49bn. EBITDA before one-offs is seen to increase by a mid single-digit percentage and core earnings per share from continuing operations by a mid single-digit percentage as well.
What a Treatt
18 Jan 17
Treatt is steadily transforming itself from a seller of flavour and fragrance-based commodities to a value-added ingredients supplier. The strategy of deep customer knowledge is paying off, leading to stronger relationships, a real competitive advantage and greater profitability, with EBIT margins increasing from 9.6% in 2014 to 10.8% in 2016. Management has delivered four consecutive years of earnings above expectations and the momentum remains strong. Our DCF analysis calculates a fair value of 293p, supported by benchmark analysis that places the stock at a c 30% discount to its peer group.
Still solid, but not perfect in an unadjusted, real world
23 Feb 17
Henkel increased sales by +4% (organic: +3%) to €18,714m, the gross profit margin weakened 30bp to 47.9% in 2016. EBITDA moved up +8% to €3,345m and net profit attributable to shareholders came in at €2,053m, +7% higher. Operating CF strongly increased +20% to €2,850m seeing a higher operating basis and a stronger NWC inflow (€281m after €20) due to higher payables as well as other liabilities and provisions. Investing CF (€-4,250m after €-893m) was clearly impacted by acquisition-related costs (€-3,727m after €-322m) for e.g. Sun Products. Financing CF swung from €-1,555m to €1,678m primarily due to the financing measures in the context of the large acquisition, which had been fully debt and cash financed as net gross debt repayment of €-1,025m swung to net gross debt issuance of €2,740m. Management proposes a +10% higher dividend of €1.60 (€1.45) per share at the AGM on 6 April 2017. For 2017, management expects organic sales growth of 2-4% with all divisions in this range, an adjusted EBIT of >17.0% and an adjusted EPS growth of 7-9%.
N+1 Singer - Strategy - Best Ideas 2017
04 Jan 17
Today we publish our Best Ideas for 2017. We have chosen 12 stocks that we believe have excellent prospects in the current year, together with an in depth discussion of what we see as the key sector and market themes for 2017. Our top picks are Cineworld, Elementis, Herald Investment Trust, Hill & Smith, IQE, MySale, Redde, ReNeuron, RhythmOne, SDL, Servelec, Severfield. Please see the separate note for further details.
29 Nov 16
The prospect of Hilary Clinton creating an oversight panel with the power to impose a set of harsh enforcement rules to control aggressive pricing of pharmaceuticals in the US fell away with the election of Trump, leading to a 16% bounce in the NASDAQ Biotech index and an 8% increase in the US Pharma & Biotech index, some of which has already been given back.