FRANKFURT, Aug 5 (Reuters) - Some of Germany's best-known
brands and industry bellwethers lifted their full-year sales and
profit expectations on Thursday, citing a broad demand recovery
from the effects of the pandemic.
Engineering group Siemens, sportswear company
Adidas, Nivea-maker Beiersdorf, as well as
pharma firms Bayer and Merck, all upgraded
forecasts for the current year, citing increasing consumer
spending and economic activity.
"The strong economic recovery across all regions continued.
China was once again a key growth engine, with Europe and the
U.S. catching up, supported by ongoing vaccination progress,"
Siemens Chief Executive Roland Busch told analysts.
"We expect this favourable macro environment to continue
with some growth moderation, especially in China. However, the
rapid spread of new virus variants shows us that the pandemic is
still not over."
The trains-to-industrial software company raised its profit
guidance for the third time this year.
Adidas Chief Executive Kasper Rorsted, meanwhile, pointed to
better than expected demand as he delivered the company's new
sales and profit expectations, as did Beiersdorf after posting
half-year sales above pre-crisis levels.
Agricultural and pharmaceuticals Bayer predicted that
revenues would grow more strongly this year as sales of
prescription medicines emerged from what it said was a
This chimed with similar comments from Merck, which said
that the business recovery that started in the second half of
last year would continue in 2021.
"At present, the company does not expect that further
disease waves will have a negative effect comparable to that
seen in the first half of 2020, especially on the Healthcare and
Electronics business sectors," the Darmstadt-based company said.
Investor reaction was mixed, with shares in Siemens, Merck
and Beiersdorf all trading 3%-6% higher, while Adidas and Bayer
both fell 5% to the bottom of Germany's benchmark index as
investors pointed to weaker-than-expected growth.
"So far the market's response is muted. There are different
reasons for that. On the one hand China's toughening stance with
regard to the local IT sector is a source of concern," said Marc
Decker, head of fund management at Merck Finck.
"On the other hand, inflation and yield developments as well
as the most recent negative newsflow around the Delta variant is
The outlook upgrades by German corporations come as
industrial orders in Europe's largest economy registered the
biggest increase in 10 months, driven by bookings for large
industrial items, mainly from domestic clients.
Figures published by the Federal Statistics Office on
Thursday showed that orders for goods made in Germany jumped by
4.1% month-on-month in seasonally adjusted terms, beating a
Reuters forecast for a 1.9% increase.
(Reporting by Christoph Steitz; Editing by David Goodman and