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Research Tree provides access to ongoing research coverage, media content and regulatory news on WACKER CHEMIE AG. We currently have 7 research reports from 1 professional analysts.
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WACKER CHEMIE AG
WACKER CHEMIE AG
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.
Good chemicals, silicon-based moderate
30 Oct 15
Q3 sales rose +10% to €1,358m and the gross profit margin improved from 19.2% to 22.0%. EBITDA dropped 24% to €264m (w/o one-offs: €247m after €254m) and net income attributable to shareholders halved (€60m after €121m). Operating CF came in fairly unchanged at €189m due to a nearly halved NWC outflow (€-66m after €-126m). Investing CF increased from €-178m to €-282m, predominately driven by significantly higher capex. Financing CF swung from 82m to €-54m due to changes in financial liabilities. Management slightly adjusted FY guidance. Sales are still seen as increasing by c.10% and it continues to expect a slight rise at the EBITDA level and a somewhat lower EBITDA margin. Group net income is now seen somewhat below 2014 (previously: below 2014; €195m).
Innovate, specialise, integrate, globalise
01 Dec 16
Carclo has refocused investment in its established businesses (Technical Plastics and LED Technologies), where a differentiated offer and long-term relationships with customers provide good earnings visibility and more certainty of a return. This strategy delivered strong revenue and profits growth during H117. This growth appears set to continue, underpinned by long-term relationships with blue-chip customers. We leave our estimates and indicative valuation broadly unchanged and introduce our estimates for FY19.
Small Cap Breakfast
29 Nov 16
Asia Pacific Investment Partner - the research-driven emerging and frontier markets real estate development business intends to float on AIM and conduct a placing in December RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.
30 Nov 16
Results have yet again beaten our forecasts and the management has now delivered the fourth consecutive year of earnings above expectations. The share price is up 41% over the last three months, and Treatt is steadily moving from commoditised sales to more value-added products. Its strategy of deep customer relationships is paying off, giving it a real competitive advantage and improving margins. The year finished strongly and momentum is due to continue in the traditionally seasonally weaker Q117. Our P&L forecasts are broadly maintained, but our fair value moves to 272p (from 240p) as a result of stronger cash flow.
N+1 Singer - Carclo - Trading in line; all divisions performing well
15 Nov 16
Trading remains positive with momentum strong in Plastics and LED. For those willing to look past the pension and dividend issues discussed previously (or for those who think bond yields will now start to help the situation), we feel that there is an attractive investment case at these levels (P/E of c.10x March 17). We remain at Buy.
15 Sep 16
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