Shares of Daimler AG (ETR: DAI) gained 6% today after the car-maker reported a decline in sales of 34% for the second quarter ending June 30. However, Daimler is hopeful that it can be profitable at the end of the year as the recovery has already started. 

Daimler, the manufacturer of famous Mercedes Benz cars, reported that total unit sales decreased by 34% to 541,800 passenger cars and commercial vehicles. As a consequence, revenue tumbled 29% to €30.2 billion from €42.7 billion in the same period last year.

Daimler finished the quarter with a net loss of €1.9 billion, more than 50% higher than the net loss of €1.24 billion on a year-to-year basis. Daimler’s Mercedes-Benz Cars & Vans unit recorded a drop of 30% in sales.

Still, Daimler is hopeful it can finish the year on a positive note after witnessing a surge in the demand for cars following the lifting of the lockdown measures. This is dependent on the continuation of the economic recovery without significant hit COVID-19 outbreaks. 

Earlier this month, Invezz reported that Daimler is looking to sell its Hambach factory as a part of the process of streamlining global production.

Daimler stock price surged 6% after the car-making giant reported its Q2 financial results. Boosted by prediction of profitability, investors pushed the price action higher to a 5-month high at 41.78. 

As seen in the chart above, the price movements are now above the initial resistance, however, still facing a confluence of strong resistance lines from 41.50 to 45.50. 

Read more on how to select winning stocks. 

Daimler stock price gained 6% after the Mercedes-owner said it is hopeful that it can become profitable again at the end of the year amid the recovery in demand for cars. 

The post Daimler stock price gains 6% on profits expectations appeared first on Invezz.