Corporate earnings forecasts are changing at record speed

–

Düsseldorf On Tuesday, the division of the German economy became apparent within a few minutes. First, wind turbine maker Siemens Gamesa scaled back its revenue and profitability targets. Shortly thereafter, the manufacturer of fragrances and flavorings Symrise raised its sales forecast.

The two groups are thus examples of the two opposing trends in the German economy. On the one hand, rising prices and interest rates, expensive energy, recession concerns and ongoing supply chain problems are forcing more and more companies to cut their annual targets.

Companies from the Dax, MDax and SDax shocked their shareholders 26 times in the first half of the year with profit or sales warnings, including Adidas, Henkel, Fresenius and Covestro. According to calculations by the management consultancy EY, there were only eight in the first half of the previous year.