FRANCE: Renault reports 23% rise in first half revenues
The Renault group said today (30 July) it had posted significant improvements in earnings and sales for the first half of the year: revenues totaled EUR19.668bn (US$25.6bn), up 23.1% on the first half of 2009, while worldwide sales grew 21.7% and the group’s share of the global passenger car and LCV market reached 3.8%, an increase of 0.15% year on year.
Net income was EUR823m and the group reported an operating margin of 4% and a positive automotive free cash flow of EUR1.4bn.
Renault president and CEO Carlos Ghosn, said: “The actions we have undertaken are paying off. All group brands and regions increased market share. We also controlled our costs, benefiting from synergies within the alliance. In an uncertain environment in the second half of 2010, the group will continue to focus on its key target of generating positive free cash flow for the full year.”
Consolidated operating margin reached EUR780m or 4% of revenues, compared with a loss of EUR620m, or -3.9% of revenues, in first half 2009.
The contribution from associated companies improved substantially. In the first half, associates contributed a net gain of EUR531m, mainly from Nissan and Volvo Trucks.
Renault said it expects the global automotive market to grow by approximately 8% in 2010 compared to 2009, despite an estimated 7% to 9% decline in the European market.