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Renault’s Sales, Earnings Slide
Renault SA reports that its revenue and net income in 2018 fell 2% to €57.4 billion ($64.8 billion) and 38% to €3.3 billion ($3.7 billion), respectively.
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Renault SA reports that its revenue and net income in 2018 fell 2% to €57.4 billion ($64.8 billion) and 38% to €3.3 billion ($3.7 billion), respectively.
The company blames the downturn on unfavorable exchange rates, its withdrawal from the Iranian market and a global slump in demand for diesels. When currency effects are excluded, revenue in 2018 rose 3%.
Renault notes that the contribution to net income from its 43% stake in Nissan Motor Co. slid by €1.3 billion last year. The drop reflects comparison with Nissan’s windfall €1 billion gain in 2017 from changes in U.S. corporate taxes.
Renault’s unit sales last year grew 3% to 3.9 million vehicles, including those produced through joint ventures in China. Group operating income in 2018 plunged 22% to €3 billion ($3.4 billion).
For 2019, Renault forecasts stronger revenue, assuming no change in exchange rates and an operating margin of about 6% compared with 6.3% last year.
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