Germany’s stock market heavyweights increased their profits by an average of 17 percent in the second quarter compared to the previous year. However, not all companies from the DAX 40 took part in the development, reports the management consultancy EY. Nearly half of companies, including all automakers, reported a decline in profits, according to EY. The auto industry overall saw a decline of 11 percent compared to the previous year.
With a view to winning, that was again the case Deutsche Telekom the strongest company, which generated an operating profit (EBIT) of 6 billion euros Volkswagen (5.5 billion euros) and Mercedes (4 billion euros). According to the information, the energy supplier achieved the highest growth rates in profits RWE with a plus of 667 percent, the sporting goods manufacturer Adidas (plus 97 percent) and the defense company Rheinmetall with 96 percent. Bavarian and Siemens Energy have now returned to profitability after losses in the same quarter of the previous year.
Sales growth is on average below the inflation rate
25 of the 38 DAX companies (excluding banks) recorded sales growth, the average value of 1.7 percent being below the inflation rate. Business in Europe developed more positively than in the other markets. In Asia, sales even fell by five percent.
The chairman of the EY management board, Henrik Ahlers, speaks of “strong figures overall”. “We are on the verge of a recession in Germany. We also see structural problems in many industries, such as overcapacity and a difficult cost situation.” However, many top German companies are very strongly positioned worldwide, and some foreign markets still offer growth opportunities.
According to EY, employment continued to improve, with the vast majority of companies reporting growth. In total, the number of employees rose by 1.0 percent to a record 3.25 million.