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Renault Profits Soar 41% in First Half
Group operating profits at Renault SA jumped to €1.5 billion ($1.7 billion) in January-June from €980 million in the same period last year.
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Group operating profits at Renault SA jumped to €1.5 billion ($1.7 billion) in January-June from €980 million in the same period last year. Net income grew 8% to €1.6 billion ($1.8 billion).
Renault’s group revenue for the period climbed 13% to €25.2 billion ($$27.9 billion), thanks to an updated lineup and Europe’s expanding auto market. The company says its 42% stake in Nissan Motor Co. contributed €749 million in the first half, down from €979 million a year earlier because of a one-time charge booked in the first quarter.
Revenue from Renault's automotive operations rose 14% to €24.1 billion ($26.7 billion) in January-June. Results were buoyed by higher prices and a richer sales mix. Operating profits for the unit expanded 41% to €1.5 billion.
Losses from the company’s investment in OAO AvtoVAZ narrowed to €75 million from €87 million in the first half. Renault, which is planning to recapitalize the Russian carmaker, expects to consolidate AvtoVAZ by the end of this year.
Renaults expects the worldwide car market to grow 1.7% in 2016, including gains of at least 5% in Europe, 4% in China and 7% in India. The company affirms previous guidance for positive automotive cash flow and gains in revenue and operating margin.
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