DAX heavyweights doing better than ever

A fresh study by consultancy EY showed Monday that overall the 30 companies listed in Germany's DAX index booked their best ever second-quarter results this year, boosted by an uptick in global economic activity and a continued recovery process in the European Union.

The 30 blue chips logged a combined quarterly operating profit of some 39 billion euros ($46 billion), EY's study revealed, a record figure for the quarter and an increase of well over 30 percent year on year.

The companies' combined revenues came in at 344 billion euros for the April-June period, marking a 6-percent jump on the year.

Cautious outlook

"The DAX-listed firms were able to keep up their first-quarter momentum and even improve their profits further," EY board member Mathieu Meyer said in a statement. "And that's remarkable, given the insecure political environment and the inherent economic risks," he added.

Meyer warned that a stronger euro and rising commodity prices could spoil the party in the months ahead.

The EY survey pointed out that the DAX companies' activities were particularly strong in Asia and the US on the basis of a euro, which was still a lot weaker in the period under review. Revenues in those two world regions rose by 10 percent, while those from activities in Europe climbed by only 5 percent.

EY analysts said the DAX-listed firms had kept investing heavily in their research and development units.

The 30 enterprises in question now employ some 3.8 million people, with an increase of 3.7 percent posted for the second quarter.

hg/jd (dpa, EY)