{"id":63051,"date":"2026-07-28T20:37:08","date_gmt":"2026-07-28T20:37:08","guid":{"rendered":"https:\/\/www.europesays.com\/germany\/63051\/"},"modified":"2026-07-28T20:37:08","modified_gmt":"2026-07-28T20:37:08","slug":"mercedes-stock-climbs-3-5-as-cost-cuts-lift-profit","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/germany\/63051\/","title":{"rendered":"Mercedes Stock Climbs 3.5% as Cost Cuts Lift Profit"},"content":{"rendered":"\n

This article first appeared on GuruFocus<\/a>. <\/p>\n

Mercedes-Benz (MBGAF<\/a>), a German luxury-vehicle manufacturer, climbed<\/a> 3.5% in Tuesday’s European trading after second-quarter operating profit increased 22% to 1.5 billion. The shares had advanced as much as 5.9% earlier in the session as investors assessed progress from cost reductions. Revenue declined 3%, showing that improved profitability was supported more heavily by cost control and other operating factors than by sales growth. <\/p>\n

The company reported an adjusted return on sales of 4%, within its expected range of 3% to 5%. Results also included a 131 million gain from the disposal of Athlon, a vehicle-leasing and fleet-management business. Mercedes has been reducing expenses in Germany while shifting some production to lower-cost facilities in Hungary and Poland. However, vehicle sales in China declined 30%, increasing pressure on a company already facing intense competition and weaker luxury-car demand in the country. <\/p>\n

Mercedes now expects annual revenue and vehicle sales to decline slightly, compared with its previous expectation for stable results. Management also anticipates that full-year margins will finish near the lower end of its range, partly because selling more electric vehicles in Europe could increase costs. The 131 million Athlon gain represented approximately 8.7% of Mercedes’ 1.5 billion quarterly operating profit, suggesting investors may need to distinguish disposal-related support from the underlying benefits of the company’s cost reductions. China’s performance and the cost of meeting European electric-vehicle demand may remain important variables for future margins. <\/p>\n","protected":false},"excerpt":{"rendered":"This article first appeared on GuruFocus. Mercedes-Benz (MBGAF), a German luxury-vehicle manufacturer, climbed 3.5% in Tuesday’s European trading…\n","protected":false},"author":2,"featured_media":25655,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20951],"tags":[48328,3622,15010,22833,48327],"class_list":["post-63051","post","type-post","status-publish","format-standard","has-post-thumbnail","category-mercedes-benz","tag-european-trading","tag-mercedes-benz","tag-operating-profit","tag-return-on-sales","tag-vehicle-sales"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/63051","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/comments?post=63051"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/63051\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media\/25655"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media?parent=63051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/categories?post=63051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/tags?post=63051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}