Dusseldorf Rising energy prices, scarcity of raw materials, interrupted supply chains – the war in Ukraine poses a challenge for most German companies. Many companies have already adjusted their profit forecasts for this year. One industry that is particularly affected is the aviation industry. “Lufthansa has already reduced its profit estimate by 70 percent and losses are already being expected,” says Handelsblatt stock analyst Ulf Sommer.
In the first part of the Handelsblatt Today Extended Live podcast, Sommer already explained which companies are making profits despite the precarious situation. In this episode he talks about the losers of the crisis and the risks that are currently burdening many German companies due to the war. The chemical and automotive sectors in particular are struggling with losses. Both industries are heavily dependent on intact supply chains.
Another reason for the weakened profit forecasts is the abandonment of the Russian business. This affects the aviation industry, among other things, because a significant part of the holiday business is lost due to flight bans in Russia.
Prospects for German economy deteriorate due to sanctions
The Düsseldorf-based consumer goods manufacturer Henkel, for example, generates five percent of its total profits in Russia. However, Sommer considers this to be the exception and explains that the 100 largest listed German companies each generate around one percent of their sales in Russia. “It may be small, but the impact is big,” he comments.
Top jobs of the day
Find the best jobs now and
be notified by email.
The economic situation is currently worse than in March 2020, “but still better than in the ongoing stage of the pandemic.” The prospects are worse today than they were then. This is due to the numerous sanctions and the resulting disruption in trade flows and material and raw material shortages.
However, investors in the crisis-hit companies do not automatically have cause for concern: “If the war ends quickly, these shares will certainly have more upside potential than the market average.”
We have an exclusive subscription offer for you as a Handelsblatt Today listener. Interested? Then take a look here.
If you have any comments, questions, criticism or praise for this episode, please email us at: [email protected]