MUNICH (dpa-AFX) - Despite signs of recovery in the chemical industry, Wacker Chemie remains cautious about its future business development. "Customers have started to replenish their inventories from the recent very low levels," said Group CEO Christian Hartel on Thursday, according to a press release, when presenting the company's first-quarter results. "However, a clear signal for a sustainable turnaround cannot yet be derived from this." The manager confirmed the annual targets.

The share price rose by a good half a percent to 107 euros on Thursday morning. The decline in the year to date has thus melted to a good six percent.

With sales down by 15 percent to 1.5 billion euros, earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 39 percent year-on-year to 172 million euros in the first quarter, it was also reported. The MDax group thus achieved the median analyst estimate with its turnover and exceeded it with its operating profit. The surplus fell by around two thirds to 48.4 million euros.

Analyst Chetan Udeshi from the US bank JPMorgan spoke of strong results in an initial reaction, but this was mainly due to lower costs outside the core business. Overall, the core business had met profit expectations.

In addition, the company is now taking a more positive view of the silicones business, which was very strong at the start of the year, as part of the confirmed annual outlook, according to Udeshi. These are a variety of plastics that are used in the electronics industry, by textile manufacturers, medical technology companies and in the construction industry. However, the analyst also criticizes the fact that Wacker has not provided a concrete outlook for the second quarter of the year. And this is likely to be the focus of attention, as prices for standard silicones in China have recently fallen, as have those for solar silicon.

Overall, Wacker Chemie CEO Hartel is still aiming for sales of EUR 6 to 6.5 billion in 2024. Earnings before interest, taxes, depreciation and amortization should reach EUR 600 to 800 million. At best, this would mean a small year-on-year increase in sales, but in any case at least a moderate decline in operating profit.

The company is also focusing on cost-cutting measures in a persistently difficult environment. "We are continuing to pursue a restrictive personnel policy, streamlining processes and saving on our material costs," explained Hartel./mis/mne/stk