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Renault Earnings Plummet 95% on One-Time Charges
Renault SA's net profit plunged to €39 million in the first half of 2013 from €734 million a year earlier.
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Renault SA's net profit plunged to €39 million in the first half of 2013 from €734 million a year earlier.
First-half net results were dragged down by €832 million of one-time charges, including a €512 million writeoff of assets in Iran. Earnings before interest, taxes and one-time items climbed 15% to a better-than-expected €538 million.
Revenue dipped 1% to €20.4 billion in the January-June period. Improved pricing mostly offset unfavorable exchange rates and slumping demand in Europe. Global sales fell 2% to 1.3 million vehicles.
Affiliate Nissan contributed €766 million to income. But Renault took a €10 million loss on its stake in Russian carmaker AvtoVAZ. In Iran, tougher international economic sanctions have prevented Renault from repatriating payments for vehicle kits it shipped there.
Free cash outflow from auto operations was €31 million in the six-month period. Renault had €732 million in cash on June 30.
The company affirms full-year outlook for its auto operations of positive adjusted EBIT, higher global vehicle sales and positive cash flow.
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