Renault has recorded half-year operating margin up 5% to EUR1.9bn (US$2.2bn) compared with EUR1.8bn last year, representing 6.4% of revenue.
Despite that, net income fell 16% to EUR2.04bn, with the decrease arising from Nissan’s contribution, down EUR483m, which benefited from a capital gain last year.
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Group revenue rose 1.4% to EUR29.9bn, while registrations were up 10% to 2.07m units.
Group operating income fell 3.1% to EUR1.73bn compared with EUR1.78bn The decrease came mainly from a provision for restructuring.
“The Group posted new record results for a first half-year in a volatile economic environment,” said Renault chairman and CEO, Carlos Ghosn.
“These results are due to our strategy of regional diversification, the success of our new products and the commitment of all our employees. The results give us confidence in the achievement of our guidance for the year.
Outlook 2018:
The global market is expected to grow 3% compared to 2017 (previously +2.5%). The European market is expected to expand 1.5% (vs +1%) with an increase of 2% (vs +1%) for France.
Internationally, the Brazilian market is forecast to grow 10% (vs + 5%) and the Russian market more than 10% (vs close to +10%). China is expected to grow 5% (unchanged), and India 8% (vs 6%).
Within this context, Groupe Renault is confirming its full-year 2018 guidance:
- – Increase Group revenues (at constant exchange rates and perimeter1)
- – Maintain Group operating margin above 6.0%*
- – Generate a positive Automotive operational free cash flow
