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Renault Profit Plummets 39%
Renault SA netted €746 million in the first six months of this year compared with €1.2 billion in the same period of 2011.
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Renault SA netted €746 million in the first six months of this year compared with €1.2 billion in the same period of 2011.
Revenue dipped 1% to €20.9 billion. Sales declined 3% to 1.33 million units as stronger sales overseas only partially offset Renault's 15% drop in European volume. The company's revenue rose 7% to €11.4 billion in the second quarter. Revenue is the only financial data Renault reports on a quarterly basis.
Operating earnings fell 23% year over year to €482 million in the first half. Operating return on sales shrank to 2.3% percent of sales.
The company affirms its full-year goal of generating positive cash flow from its auto operations despite a €200 million outflow in the first half.
Renault says international growth and new-vehicle launches in the second half will enable the company to achieve its full-year global sales goal of surpassing its 2011 volume of 2.72 million units. But Renault has scrapped its target of boosting vehicle sales 3%-4%.
The company hiked its estimate for 2012 growth in the global auto market by one point to 5%. But its forecast for declines in the European and French car markets worsened by three points each to 6%-7% and 10%-11%, respectively.
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