BERLIN, Aug. 14 (Xinhua) -- German corporations listed on the country's prestigious DAX stock exchange have seen record profits and revenue in the first half of 2017, a study published by the management consultancy Ernst and Young (EY) revealed on Monday.
The operating profit of the 30 firms listed on the Frankfurt-based blue-chip index rose by nearly a third in Q2, 2017 to a historical high of 39 billion euros. Combined gross revenue increased by 6 percent to the unprecedented mark of 344 billion euros.
The figures further underscore Germany's current economic momentum as the country benefits from low unemployment, rising incomes, favorable interest rates, healthy public finances, as well as growing domestic and international demand.
At the current rate, German Chief Executive Officers of DAX-listed enterprises were looking at a record overall year.
"Nine firms lifted their profit forecasts for the entire year when presenting their half-year earnings, only two firms issued profit or revenue warnings," EY manager Mathieu Meyer drew attention to the optimism in German board rooms.
Despite being saddled with ongoing "dieselgate" and "cartel" scandals, two German carmakers still came out on the top of the DAX profit rally. Volkswagen achieved earnings before interest and taxes (EBIT) of 4.5 billion euros, ahead of Daimler with 3.7 billion euros.
The biggest profit growth was recorded at the energy suppliers Eon and RWE with an increase of 343 percent and 238 percent, respectively. Both firms received sizeable tax rebates from the German government after an environmental levy which they paid previously was ruled unconstitutional in June.
Financial institution Commerzbank (-43 percent) and software company SAP (-27 percent) came bottom of the DAX league for their EBIT performance.
All 30 companies save for two (Munich Re and RWE) assessed by EY witnessed revenue growth. The number of staff employed by the firms in the first half of 2017 grew by 3.7 percent year-on-year or 135,000 positions to a total of 3.8 million.
German DAX corporations' unusually strong earning performances was already apparent during the first three months of the year and has been supported by the international revenue growth of 10 percent in the U.S. and Asian markets.
Firms also are benefiting from steady global growth and a strengthening economic recovery in the 19-member eurozone. Across Europe, revenue grew by 5 percent.
The EY study also flagged risks of exchange rate instability and rising commodity prices going ahead.
"During the first half of the year, a relatively weak euro led to slightly positive currency effects in earnings figures and promoted exports beyond Europe. In the meanwhile, the trend has reversed." Meyer warned.
The study also singled out British economic development as a risk factor for German firms. While a feared immediate collapse after the Brexit vote in June 2016 had not come to pass, there were worrying signs of falling demand from consumers and slowing growth in the United Kingdom.
For example, exports of German cars and car parts to Britain had fallen by 10 percent during the first five months of 2017.
The British economy only grew at half the speed of the eurozone in the second quarter of 2017 as it added a modest 0.3 percent to Gross Domestic Product.
A recent study of economic sentiment by the German Ifo institute showed that the United Kingdom's country barometer fell sharply while the eurozone was still going from strength to strength.x British cabinet minister reaffirmed their commitment to leave both the European Union's Single Market and Customs Union on Sunday, further stoking fears of future barriers to trade amongst business representatives.
