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(AWP Alliance News) - Germany's 40 blue-chip DAX companies posted record second-quarter operating profits while cutting more than 40,000 jobs, according to a study by consultancy EY released on Friday.
Combined earnings before interest and tax rose nearly 16% to EUR52.6 billion, about EUR7 billion more than a year earlier and 10% above the previous second-quarter record set in 2024.
Revenue rose 4.6% to a record EUR463 billion despite the war in Iran and trade tensions with the US.
Deutsche Telekom AG, Germany's largest telecommunications company, led quarterly operating profits with EUR6.9 billion, followed by insurer Allianz SE with EUR4.9 billion, carmaker Volkswagen AG with EUR3.5 billion and industrial group Siemens AG with EUR3.4 billion.
Pharmaceutical and agrochemicals group Bayer AG and property company Vonovia AG recorded the strongest profit growth.
EY said growth was concentrated in sectors benefiting from special conditions, including defence, artificial intelligence and data centres, as well as banks and insurers.
Chemical companies also benefited from being able to raise prices due to the war in Iran and supply shortages in Asia.
Traditional industrial companies, particularly carmakers, continued to struggle.
Carmakers revenue fell 1.2% and operating profit dropped 12%. BMW AG suffered the steepest decline, with EBIT down 39%, while Volkswagen and Daimler Truck Holding AG each recorded a 9% drop.
"Anyone looking only at the record figures might think the crisis is over - but the opposite is true," EY Germany chief Henrik Ahlers said, citing weak domestic demand and fragile conditions in parts of industry.
source: dpa
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