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Investing.com -- Wacker Chemie (ETR:WCHG) shares rose 4% on Thursday despite the German chemical company cutting its full-year earnings guidance amid persistent weak demand and foreign exchange headwinds.
The company reduced its EBITDA guidance range for fiscal year 2025 to €500 million to €700 million, down from the previous range of €700 million to €900 million. This 25% decrease at the midpoint reflects "ongoing macroeconomic and geopolitical uncertainty, which is resulting in weak demand among customers in numerous segments" and increasing foreign exchange headwinds.
Wacker Chemie had previously pre-announced second-quarter EBITDA of €114 million, which was confirmed in today’s results. This figure fell below the company-compiled consensus estimate of €119 million.
Sales declined by 4% in the second quarter of 2025, attributed to a 1% decrease in volume/mix, a 1% drop in prices, and a 2% negative impact from foreign exchange rates.
The company’s net cash flow for the quarter came in at -€137 million, an improvement compared to -€179 million in the same period last year, which had been impacted by high inventory buildup in the Polysilicon segment.
Net debt increased to €1,139 million at the end of the second quarter, up from €800 million at the end of the first quarter. The net pension deficit stood at €692 million, slightly down from €710 million at the end of the previous quarter.
Regarding its polysilicon business, Wacker noted that it had expected trade policy uncertainties in the U.S. solar polysilicon market to be resolved during the year, but this has not yet materialized.
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