Despite a persistent recession in the domestic market and increasing challenges in key regions like the United States and China, a significant portion of Germany’s top companies are poised for record earnings this year.
Analysis of published half-year results, corporate forecasts for the remainder of 2024 and projections from financial analysts indicates that 15 of the 40 companies listed on the DAX, Germany’s premier stock index, are expected to achieve their highest profits ever.
This robust performance includes prominent players such as Rheinmetall, benefiting from increased demand in the defense and crisis sectors; SAP, Germany’s most valuable company; industrial giants Siemens, Heidelberg Materials and MTU; consumer goods brand Beiersdorf; and insurance companies Allianz and Munich Re.
Overall, the 40 DAX companies are on track to report a net profit of approximately €115 billion for the year. This would represent the third-highest profit in German economic history.
While profits were even higher in 2022, reaching €118 billion, this was significantly bolstered by the automotive sector-BMW, Mercedes-Benz and Volkswagen collectively contributing €48 billion. Forecasts for 2024 suggest that the automotive sector’s contribution will likely fall to around €20 billion. Data from financial specialist Bloomberg and calculations from the “Handelsblatt” highlight this shift in sectoral performance.