These are turbulent times, also for the economy: the Ukraine war, the energy crisis, high inflation, geopolitical upheavals. But the German Dax companies, despite all the complaints, have so far come through the crisis very unscathed: for the year 2022, they are reporting new records in terms of sales and profits.
Overall, the turnover of the 40 Dax companies (excluding banks) increased by 15.5 percent to 1.8 trillion euros compared to the previous year and thus reached the highest value since the start of the evaluation in 2013, according to a current analysis of the audit – and consulting company EY emerges. Operating earnings before interest and taxes improved by at least 3.4 percent to a total of 171 billion euros. “Most Dax companies managed to pass on high costs for personnel, procurement and energy to their customers,” said EY Germany boss Henrik Ahlers. He expects a slight slowdown for 2023. In the fourth quarter of 2022, the profits of the Dax companies fell by eleven percent.
At the top of the list of companies with the highest profits is an industry that is currently in the midst of upheaval: car manufacturers. Volkswagen, Europe’s largest industrial group, ranks first among the Dax companies. The Wolfsburg-based company made a profit of around 22 billion euros in 2022, followed by Mercedes-Benz with almost 20.5 billion euros, and BMW ranked fifth (14 billion euros). The reason: In view of the scarcity on the car markets and the high state subsidies for the purchase of electric vehicles, the car manufacturers hardly had to grant discounts to boost sales. At the same time, more quality cars were sold – both good for profits. The car companies are also at the forefront when it comes to sales.
Together, VW and Deutsche Post employ almost 1.2 million people
The top earners in Germany also include Deutsche Telekom, Allianz, Deutsche Post, Bayer, Siemens and Porsche. Only two of the 40 Dax companies made losses in 2022: the housing group Vonovia and Siemens Energy. Commerzbank recorded the strongest profit increase in 2022.
In total, the Dax companies employed around four million people at the end of 2022, which is 86,000 more than a year ago. “Employment is increasing despite the economic headwind,” said EY manager Ahlers. However, many companies are now reducing staff as part of so-called efficiency programs. Volkswagen (647,000), Deutsche Post (543,000) as well as Fresenius, Siemens, Deutsche Telekom and Continental have the most employees. Expenditure on research and development increased by around eleven percent to almost 65 billion euros in 2022.
The energy companies RWE (plus 56 percent) and Eon (plus 50 percent) recorded the largest increases in sales in 2022. But this is mainly due to the rapid rise in energy prices after Russia’s attack on Ukraine. The 40 Dax companies expanded their business most strongly in North America (plus 23 percent), the companies now generate 30 percent of their sales in total in the USA and Canada, Asia/Pacific accounts for 21 percent, China alone is not shown.