Stuttgart/Frankfurt (dpa) – Despite a decline in revenue, the 40 companies listed on the DAX increased their profits in the first quarter of this year. While revenues fell by an average of 3.7 per cent, earnings before interest and taxes (EBIT) rose by 4.4 per cent compared with the same quarter last year, according to an analysis by consulting firm EY. The main driver was the financial sector, which posted a record profit increase of 15.9 per cent, while industrial companies reported profit growth of 0.5 per cent.
The highest quarterly profits were recorded by Deutsche Telekom (5.8 billion euros), Allianz (4.5 billion euros) and E.ON (3.9 billion euros). Particularly strong profit growth was achieved by E.ON, Siemens Energy and reinsurer Munich Re. All car manufacturers listed on the DAX reported falling profits.
“Despite the economic slowdown, the financial sector is posting very strong figures, benefiting from persistently high interest rates, favourable claims developments in the insurance sector and high market volatility,” says Henrik Ahlers, Chairman of the Executive Board at EY.
Amid weak global economic growth, however, the difficult geopolitical and trade policy situation is causing considerable pressure and losses for many traditional industrial companies.
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