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DAX the Way to Do It

DAX-Montage [434290]
Adidas and Siemens (r) are enjoying a very good 2016, while Deutsche Post and Daimler have been battling stagnation and export losses.
  • Why it matters

    Why it matters

    Overall, first-half results show the 30 DAX firms are more than weathering the economic storm despite exports being badly hit.

  • Facts

    Facts

    DAX firms increased their operating profits by €38 billion ($42.5 billion) to €65.8 billion in the first half of the year.

    The improvement in profits at several firms such ThyssenKrupp and Siemens has attributed to drastic restructuring measures.

    But many firms, such as Deutsche Bank, Daimler and BASF have been hit by falling exchange rates and exports.

  • Audio

    Audio

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It’s been a tough summer for German firms. The weak global economy, the dismal void left by the Brexit vote and unfavorable currency effects have been making things difficult for weeks.

Several geopolitical crises and terrorist attacks in major European cities have only added more angst. Yet managers at German corporations are showing no signs of gloom.

A number of groups have recently raised their annual forecasts, including pharmaceuticals giant Bayer, health care specialist Fresenius, automotive supplier Continental and electronics titan Siemens. They were followed on Thursday by Henkel, the consumer products and industrial group.

These upward revisions have been made possible by lengthy and costly restructuring measures that have ultimately proved successful as well as a focus on lucrative and high-margin areas of business.

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