Four billion risks for profits

Dusseldorf Rising raw material costs, shaky energy contracts and stricter sanctions: the Ukraine war is putting the German economy to the test. Analysts therefore expect significantly falling profits at Germany’s largest listed companies.

Since January, the analysts have lowered their estimates for the annual operating profit for a number of companies from the Dax, MDax and SDax by ten percent or more. Among the biggest losers are the consumer goods manufacturer Henkel, the forklift manufacturer Jungheinrich and the medium-sized holding company Indus. For Lufthansa, profit forecasts have even fallen by 71 percent since the beginning of the year.

Also under a lot of pressure: car manufacturers and suppliers. Expectations for the industry have fallen by more than three billion euros since the beginning of the year. Commerzbank analyst Markus Wallner predicts: “Due to ongoing material shortages and significantly higher energy costs, the earnings momentum of some companies is likely to level off noticeably.”