EY: for the first time since 2020, drop in turnover and profits for Dax groups

FRANKFURT (dpa-AFX) – The record race of many Dax groups temporarily came to an end in the third quarter: For the first time since the second quarter of 2020, hampered by the Corona pandemic, the stock market heavyweights had to record a decline in their turnover and profit, as calculated by the consulting firm EY.

According to EY data published on Thursday, the turnover of companies in the German Stock Exchange Premier League fell by almost five percent between July and September 2023 inclusive compared to the same period of the previous year, for reach approximately 436 billion euros. It was especially business in the United States and Asia that weakened. Operating profit (Ebit) fell by just over eleven percent to 39.2 billion euros, but still reached the second highest value on record in the third quarter.

“Large German groups are increasingly feeling the headwinds of the global economy,” analyzed Henrik Ahlers, Chairman of the Executive Board of EY. “We face a dangerous mix of crippling economic conditions, high energy and materials prices, delivery difficulties, political crises and armed conflict.”

But also many groups with better deals

However, not all companies and sectors are affected in the same way: Regarding turnover, 15 of the 38 Dax groups whose figures were taken into account in the evaluation recorded an increase per compared to the same period of the previous year. The largest percentage increase was recorded by the arms group Rheinmetall with more than 24%.

As for operating profit, 16 of the German stock index groups recorded an increasing value in the third quarter compared to the same period of the previous year. According to the EY analysis, Deutsche Telekom is in the lead with 5.4 billion euros. The car manufacturers Volkswagen, Mercedes-Benz and BMW follow in the ranking, each with an operating profit well above four billion euros.

Despite an overall uncertain outlook, employment growth continues: According to EY data, the number of employees in the 28 Dax groups having provided information on this subject increased by 1.6% in the third quarter compared to in the same period of the previous year, reaching 3.3 million./ben/DP/jha