Mercedes-Benz parent company Daimler (OTCPK:DDAIF) has faced a tough period on the stock market. Shares tumbled in early May and remained down throughout June and July due to fears over the company’s Q2 2019 results.

Those fears rang true; the company posted a sizeable loss of €1.56 billion ($1.74 billion) for the second quarter of 2019. The loss was expected as the company allowed for diesel-related legal costs along with expenses from the ongoing Takata airbag recalls.

Daimler had warned investors; this was its fourth profit warning since June 2018.

DDAIF stock is currently selling for $53.90, up 0.07% on the day.

Daimler Stock: Incurred Costs

The company faced significant one-time costs in the period, as mentioned above. Due to regulatory crack-down on diesel emissions, the company faced litigation costs totaling €2.55 billion.

The Takata airbag recall cost the company €1.15 billion and a further €459 million was needed for a product-line revamp in its Mercedes-Benz Vans division.

Moving Forward

Daimler has suffered from a global decline in car sales but moving forward, Forbes expects “gross revenue to increase by 2.2% to $195 billion in 2019.” This is because sales are expected to pick up in the latter half of the year.

At the same time, however, “Gross Profit margin is expected to decrease to around 25.9%.”

Overall though, the full-year guidance suggests that better pricing and margins should improve profitability, which will likely boost Daimler stock price.

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Daimler News

In other news, the company has developed the all-electric eActris truck specifically made for product-delivery services. The goal is to tackle the climate crisis. The company says its new line can “help on-demand delivery remain timely without polluting the air.”

According to think tank Agora, 38% of European road emissions come from heavy-duty vehicles. And further emissions from trucks and buses have risen at a rate of 2.2% annually since 2000, according to the International Energy Agency.

The eActris truck, which aims to be on the road by 2021 after 5-years of development, produces zero C02 emissions while driving. The battery is charged via renewable green energy sources, so it too produces zero emissions. As Gesa Reimelt, head of e-mobility, says, “this is huge.”

Do you think Daimler stock can expect a better latter half of 2019? What are your thoughts?

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