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Strong performance: WACKER CHEMIE stock picks up: WACKER CHEMIE significantly exceeds expectations for 2021 | news


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Based on preliminary figures, the operating result in the final quarter is above its own forecast and above the average analyst estimate, as the MDAX group announced on Thursday evening. According to JPMorgan analyst Chetan Udeshi, the company should have benefited from good demand for silicones and deals with the solar and semiconductor industry base material polysilicon. WACKER CHEMIE shares rose significantly on Friday. The papers led the index of medium-sized stocks on Friday with an increase of 7.33 percent to 152.30 euros. They are thus continuing their recent recovery after still suffering from concerns about falling polysilicon prices in late 2021. Overall, many investors were too critical of this business area, wrote analyst Markus Mayer from Baader Bank in a first reaction to the key data for 2021. Due to higher electricity and raw material costs, profits in the division are likely to fall in 2022, but less than is generally expected, The expert believes that based on preliminary calculations, the group’s earnings before interest, taxes, depreciation and amortization (Ebitda) in the year 2021, which has just ended, were around 1.5 billion euros, more than twice the 2020 value. Sales rose by almost a third to around 6.2 billion euros. The Executive Board intends to publish further preliminary business figures at the end of January.WACKER is benefiting from the worldwide expansion of photovoltaics. In addition, the company’s high-purity polysilicon is “in almost every second computer chip installed worldwide,” as CEO Christian Hartel emphasized last year. At the same time, the construction boom is giving momentum to the polymer business. These very differently pronounced chemical compounds serve, among other things, as the basis for adhesives, but they are also added to floor coverings, paints or concrete. This allows the properties of the materials to be changed depending on the application. The group’s silicones – versatile plastics – are also in demand, for example in the electronics industry, with textile manufacturers, medical technology companies and car manufacturers. Strong price increases in this division should have helped the Munich company in the final quarter to absorb higher raw material prices, explained JPMorgan expert Udeshi. At the same time, the pressure from the high electricity prices should have been limited thanks to hedging transactions./mis/tav/stkMÜNCHEN (dpa-AFX)

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