The Renault Group has reported a hefty rise in operating profit for the first half of 2015.
Group operating profit rose 47% to EUR1,069m or 4.8% of revenues, compared to EUR729m, or 3.7% of revenues in H1 2014. Total revenues rose 12% to EUR22,197m while new vehicle registrations were up 0.8% to 1.38m units.
The automotive operating profit rose even more, by 89% to EUR656m (3.1% of revenues versus 1.9%).
Group operating income was up 105% to EUR953m and net income rose 83% to EUR1,469m.
“Thanks to a stronger than forecasted recovery in a European market, and despite a more adverse environment in our main emerging markets, Groupe Renault half year results marked a further step towards ‘Drive the change’ plan targets,” the automaker said in a statement.
“The successful line-up renewal and expansion, European momentum and disciplined execution put the group in a favorable position to reach its revenue growth and operating margin targets”, said chairman and CEO Carlos Ghosn.
The euro’s drop against a basket of currencies had a positive impact on revenues as did a decision dating back to late 2014 to hike prices in emerging markets to offset currency depreciations, particularly in Russia and Brazil.
As well as currency, reduced costs played a part in boosting the automotive operating profit.
Renault incurred restructuring costs related to the ongoing implementation of the competitiveness agreement in France.
Looking to the rest of 2015, Renault said: “Global car demand should continue to grow about 1% in 2015 despite a significant slowdown in emerging markets. On the other hand, the European market should grow by at least 5%.”