SAP, Siemens Energy Mask Sagging German Earnings

Investors glancing at Germany’s benchmark DAX Index, hovering near a record high reached earlier in March, might be forgiven for thinking companies in Europe’s largest economy are firing on all pistons.

But closer inspection reveals that almost 90% of this year’s gains can be attributed to just five companies — SAP SE, Siemens AG, Airbus SE, Munich RE and Mercedes-Benz Group AG — with SAP contributing almost 40% to the index’s 6% return. While fourth-quarter earnings from German companies have exceeded expectations, in contrast with the rest of Europe, that has been largely driven by Siemens Energy AG, emerging from a year of heavy losses, according to Bloomberg Intelligence.