Higher profits despite inflation – not many succeed in doing that. However, some corporations are successfully passing on their higher costs this year. Seven of them are of interest to investors.
Increasing net income in difficult times
Consumers remain cautious. This affects profits for many companies – but not for all.
(Photo: dpa (4))
Düsseldorf In times of sharply rising prices, shares in companies that manage to pass on the high costs, for example for raw materials and intermediate products, to their buyers perform best. In this way it can be possible to increase the group profit despite everything.
Many market experts had expected the tech group Apple to do this. But the figures for the first quarter have now shown that it is currently becoming more difficult for the successful iPhone giant: the US company’s operating profit fell by five percent compared to the previous year.
The reason for this is consumer restraint, which is likely to continue. Loomis Sayles’ Craig Burelle estimates the likelihood of a recession in the US within the next six months to be at least 50 percent. In view of falling corporate profits, the right stock selection is becoming all the more important for investors.
The Handelsblatt used the current reporting season as an opportunity to seek out the companies that have succeeded in increasing their profits through higher product prices.
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