MUNICH—A record year in sales for Wacker Chemie A.G. has given the silicone giant the financial strength to increase its capital investments moving forward, despite an expected slowdown in sales growth in 2023.
Benefiting from higher selling prices and a positive exchange rate from a strong U.S. dollar, Wacker saw record overall sales of $8.93 billion in 2022, according to official financial results issued March 14. The results confirmed preliminary results issued in January.
Last year's high mark for the German chemical company compares to $6.74 billion in net sales in 2021, a 32-percent jump. All business units contributed in 2022.
"The war in Europe is a crucial test for the entire world, and it has thrown the global economy out of balance," CEO Christian Hartel said March 13 in Munich. "In this unpredictable and unstable situation, Wacker was able to shape fiscal 2022 very successfully. It was by far the most successful year in Wacker's history."
The successful sales year has given Wacker a beneficial investment-to-depreciation ratio heading in to 2023. As such, the company said it will invest $696 million in its facilities (across the globe) this year.
"Increased investment is an important stepping stone to achieve our goals. In the coming years, investments will be significantly higher than depreciation," Hartel said. "Wacker has the necessary financial strength for this."