Renault has reported first half net income plunging to EUR786m (US$966m) from EUR1.3bn last year.
The collapse in net income can be partly laid at Europe’s door, with Renault forecasting the market for 2012 on the Continent should decline three percentage points more than previously thought.
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It is also predicting its domestic market in France to to drop 10% – 11%.
The Group sold 1.33m units, down 3.3% on first-half 2011. Low sales in Europe were only partly offset by strong international[1] growth. Group revenues came to EUR20.9bn, down 0.8% year on year.
The Group posted an operating margin of EUR482m or 2.3% of revenues, compared with EUR630m – 3% of revenues – in first-half 2011.
Operating income was EUR519m in first-half 2012, compared with EUR772m in the first half of 2011.
Commenting on the results, Carlos Ghosn, Chairman and CEO of Renault, said: “In a difficult and uncertain environment, Renault remains on track to meet its 2012 objective of positive Automotive operational free cash flow”.
