It’s earnings season and some of Germany’s largest companies have watched their earnings soar as others’ have fallen flat. Lufthansa and Deutsche Bank were up while Siemens, amid restructuring, saw net profits ease.
Deutsche Bank led the pack of German companies reporting their quarterly earnings on Thursday, posting a more than three-fold, year-on-year net profit rise to 818 million euros ($896 million) and a 17 percent spike in revenue to 9.2 billion euros, also compared to one year prior.
The jump was largely attributed to falling taxes and profitable trading of stocks and bonds in volatile markets. But the bank’s gains were offset by extremely high litigation costs as Deutsche fights legal battles on more than 6,000 fronts.
Earlier this year, Germany’s largest lender settled a case for $2.5 billion over allegations that it had manipulated a key interest rate benchmark.
Lufthansa
Deutsche Lufthansa AG, Germany’s flagship carrier, said its second-quarter earnings had been lifted by low fuel costs, rising to 529 million euros from 173 million euros one year earlier.
The airline’s Q2 revenue was also up 8.9 percent on the year to 8.39 billion euros from 7.7 billion euros in 2014. Lufthansa noted that another reason for the positive results was the fact that there had been no pilot strikes in the April-June period.
There have been numerous industrial actions lately as Lufthansa’s pilots protested the airline’s decision to expand its budget carrier Germanwings.
Chief financial officer Simone Menne said: “The fall in fuel costs is largely responsible for the improvement in our results.”
Siemens
Meanwhile, Siemens, the maker of gas turbines, trains and other heavy equipment, said its profit had weakened slightly in the second quarter, easing 2 percent to 1.38 billion euros, down from 1.4 billion euros in the same three months last year.
The company attributed the drop to slower business at its power and gas division and severance charges that stemmed from its efforts to streamline its operations.
Revenues, however, rose 8 percent as shifting exchange rates magnified earnings in other currencies when translated into euros.
cjc/bea (AP, Reuters, AFP)
