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Renault’s First-Half Sales Up, but Net Income Drops
Renault SA says its vehicle sales through the first half of 2018 climbed 10% to a record 2.07 million units.
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Renault SA says its vehicle sales through the first half of 2018 climbed 10% to a record 2.07 million units.
But revenue in January-June advanced only 1% to €30 billion ($34.9 billion) because of unfavorable exchange rates.
The company reports that a provision for restructuring lowered its first-half group operating income 3% to €1.7 billion ($2 billion). Net income dropped 19% to €2 billion ($2.4 billion), but the company’s operating margin climbed to a record 6.4%.
Bloomberg News notes that Renault, like French rival PSA Group, has been relatively untouched by the expanding trade wars involving the U.S. That’s because most of their sales volume occurs within the European market.
Renault predicts the European and global auto markets will expand by 1.5% and 3%, respectively, this year. Both estimates are 0.5 points greater than the company’s earlier estimates.
The company confirms that it expects group revenue to increase by an unspecified amount and that it will be able to maintain an operating margin greater than 6%.
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