Daimler Truck, dynaCERT, Bayer AG: Contrasts in Q3: Established companies under pressure, newcomers with breakthroughs

Daimler Truck: Struggling with challenging market environment in Europe

Daimler Truck, the world's largest commercial vehicle manufacturer and part of the Mercedes-Benz Group, recorded a 12% decline in operating profit to EUR 1.19 billion in the third quarter of 2024. While business in North America remains stable, with an increase of 2% to EUR 725 million, profit in the Mercedes-Benz brand's European business fell by 47% to EUR 283 million. One might suspect that Brussels' regulations are playing a role in this decline.

CFO Eva Scherer sees no signs of an imminent recovery in the German economy. Political uncertainty following the collapse of the federal government could further exacerbate the situation. Germany is particularly important for Daimler Truck, as its market share here is twice as high as in the rest of Europe.

The Company is flexible with regard to possible US punitive tariffs under a future Trump administration. "We can produce every truck and bus model in both the US and Mexico," emphasizes Scherer. There is no one-sided dependence on Mexican production sites.

Despite the challenging environment, Daimler Truck confirmed its annual forecast. The stock reacted positively and gained 3.8%. The group had already revised its expectations downwards in July and announced short-time work for parts of its German workforce in August.

dynaCERT: Breakthrough in CO₂ certification opens up a billion-dollar market

After two decades of intensive research and development, the Canadian technology group dynaCERT is on the verge of a historic breakthrough in the global CO₂ reduction market. Since its founding in 2004, the Company has invested more than CAD 100 million in the development of its patented HydraGEN technology. On October 4, 2024, dynaCERT received the long-awaited Verra certification, which opens up completely new perspectives for reducing emissions from diesel engines. kapitalerhoehungen.de/interviews/dynacert-inc-president-bernd-krueper-ueber-wasserstoff-flottenbetreiber-esg-dieselmotoren-und-aktienkurs

The technology produces small quantities of hydrogen and oxygen from distilled water, which are fed to the engine via the air supply. This significantly improves the combustion of the diesel fuel. Tests show a reduction of nitrogen oxides by up to 88% and CO₂ emissions by 6 to 19%. Fuel consumption decreases by an average of 10%.

For further expansion, dynaCERT has strengthened its management team with the German industry manager Bernd Krüper. The former CEO of the Hatz Group linkedin.com/in/bernd-kr%C3%BCper-b26b4559 will market the certified technology internationally. With its 15% stake in electrolyser specialist Cipher Neutron, the Company has also positioned itself technologically for the future.

With Verra certification, customers can now use an environmental solution for about CAD 6,000 per vehicle, which pays for itself in less than six months through fuel savings and the sale of CO₂ certificates. dynaCERT plans to sell around 10,000 units in 2025. The production capacity at the partially automated plant in Toronto is 6,000 units per month.

Bayer AG: Facing headwinds in all sectors

Bayer is facing significant challenges in the third quarter of 2024. The Leverkusen-based group recorded a 4% decline in revenue to EUR 10.0 billion. Operating profit before special items fell by more than a quarter to EUR 1.3 billion.

The agriculture division is a particular cause for concern. In Latin America, business is suffering from challenging market conditions. Demand for the weedkiller glyphosate has stabilized at a lower level, leading to a 19% decline in sales of these products bayer.com/sites/default/files/2024-11/q3-2024-2024-11-12-presentation-charts-en.pdf.

There are rays of hope in the pharmaceuticals division. The new drugs Nubeqa® for prostate cancer and Kerendia® for kidney patients are developing well. However, increasing competitive pressure from generic products for the important anticoagulant Xarelto® is causing trouble for the Company.

Given this development, Bayer has to correct its forecast for the year as a whole downwards. Instead of a slight growth, the Company now expects a decline in sales of 1 to 3%. Bayer also expects a sharper decline in operating profit than previously forecast.

Meanwhile, the new CEO, Bill Anderson, is pushing ahead with the reorganization of the Company. By the end of the year, over 1,000 customer-focused teams are expected to bring the new organizational structure to life. In doing so, Bayer aims to become leaner and more efficient. We wish them luck and a steady hand in reducing the excessive bureaucracy.

Daimler Truck from the Mercedes-Benz Group is proving robust despite challenging market conditions. While business in Europe is under pressure, strong business in North America is stabilizing the balance sheet. The forecast for 2024 remains stable, with expected sales of 460,000 to 480,000 units. The operating margin exceeds analysts' expectations. The flexible production structure in the US and Mexico mitigates potential risks from possible Trump tariffs. After 20 years of development work, dynaCERT has achieved a milestone with its Verra certification. HydraGEN diesel optimization technology promises additional revenue streams through CO₂ certificates. With Bernd Krüper as the new head of operations in Germany and a production capacity of 6,000 units per month, dynaCERT is prepared for the expected growth. The technology offers an immediately available solution for CO₂ reduction. Bayer AG is fighting on all fronts: its agriculture division is suffering from weak markets and falling demand for glyphosate, while its pharmaceutical division is facing increasing competitive pressure. The forecast for 2024 has been revised downwards. CEO Bill Anderson is pushing ahead with the reorganization of the Company, but the transformation will take time. The share price is under pressure.