The Group’s preliminary earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to €824 million for 2023 (2022: €2.08 billion), down 60 percent. This was due to lower prices along with persistently high energy costs and reduced plant-utilization rates as a result of the decline in sales volumes. Savings from the Group’s ongoing efficiency measures positively supported the development of earnings.
Due to the factors described above, preliminary earnings before interest and taxes (EBIT) dropped 76 percent to around €405 million (2022: €1.68 billion). Depreciation and amortization amounted to around €418 million, up slightly on the previous year (€402 million). Net income for 2023 was roughly €330 million (2022: €1.28 billion).
“The global industrial engine began to stutter in 2023 and many companies felt the impact, as did we at WACKER,” said president and CEO Christian Hartel. “Price pressure was high, and the recovery in customer demand that was hoped for at the beginning of the year did not materialize. Persistently high energy prices in Germany further impacted our business. As a result, we could not post sales and earnings similar to the record figures WACKER achieved in 2022.” According to Hartel, a recovery in demand is currently not in view.
WACKER has been meeting the challenges of the ongoing weak market environment by increasing its focus on efficiency and cost discipline. The CEO remains optimistic about the company’s long-term prospects: “As great as the current challenges may be, we will continue to benefit from global megatrends in the medium and long term. Digitalization, renewable energies, electromobility, and energy conservation are among the key drivers of our business,” he emphasized. “Strategically speaking, we are well positioned and remain committed to our 2030 growth targets. We invest systematically in our future. Today’s investments are the foundation for tomorrow’s growth.”
Capital Expenditures, Net Cash Flow and Net Financial Assets
According to preliminary figures, WACKER’s capital expenditures came in at €710 million in 2023 (2022: €547 million), a year-over-year increase of 30 percent. The investment focus was on expanding capacity in all four business divisions.
Net cash flow for 2023 totaled some €166 million (2022: €439 million). The main reasons for this 62-percent decline were lower earnings and higher capital expenditures.
As of December 31, 2023, WACKER reported net financial debt of about €84 million (December 31, 2022: net financial assets of €409 million).
Business Divisions
WACKER sales declined year over year in 2023 due to the persistently weak market environment in its chemical segments. In its polysilicon business, the decline was particularly pronounced.
According to preliminary figures, WACKER SILICONES generated annual sales of €2.74 billion, down 21 percent on the previous year (€3.45 billion). WACKER POLYMERS generated sales of €1.58 billion in 2023 (2022: €2.00 billion), which was likewise a drop of 21 percent. At WACKER BIOSOLUTIONS, sales in 2023 of €337 million matched the prior-year level (2022: €331 million). At €1.60 billion, WACKER POLYSILICON’s sales in 2023 fell 30 percent year over year (2022: €2.29 billion).
EBITDA declined across all business divisions compared with 2022 and was markedly lower year over year at WACKER SILICONES, WACKER BIOSOLUTIONS, and WACKER POLYSILICON. The chemical company also recorded declines in its polymers business. Cost savings from the Group’s ongoing efficiency measures strengthened EBITDA in every division.
WACKER SILICONES generated EBITDA of €236 million in 2023 (2022: €876 million), which represents a decrease of 73 percent. In addition to lower prices particularly for standard products and lower volumes of specialty products, reduced plant-utilization rates impacted EBITDA.
At WACKER POLYMERS, EBITDA amounted to €253 million (2022: €289 million). This decrease of 12 percent was chiefly due to the significant year-over-year decline in selling prices and volumes. Lower raw-material prices had a positive impact on the division’s EBITDA.
WACKER BIOSOLUTIONS generated EBITDA of €7 million last year (2022: €17 million), a year-over-year decline of 59 percent. This decrease was mainly attributable to integration and upfront costs at the León and Halle sites.
WACKER POLYSILICON’s EBITDA fell 61 percent in 2023 to €321 million (2022: €826 million). This decline was primarily prompted – for production-related reasons – by lower volumes and prices for solar-grade polysilicon. Ongoing high energy prices in Germany also had a negative impact. The share of semiconductor-grade polysilicon to total volumes grew further in 2023.
