Many of Germany’s large industrial corporations are using their third-quarter business results to prepare the public for lean times ahead.
Executive boards are lowering forecasts for next year, or they are tempering expectations by holding out the prospect of only minor increases in revenues and profits. Last Thursday, sporting goods maker Adidas announced that it expected growth to decline in 2015. Lanxess, a specialty chemicals company, is slashing 1,000 jobs to achieve future savings in the triple-digit millions.
But instead of plunging, share prices are holding up surprisingly well. In fact, Adidas has been one of the biggest winners on the market. Are shareholders simply refusing to believe what executives are telling and showing them? No, shareholders are interpreting executive caution as high-level whining – and they’re right.