Renault has posted first-half net income down almost 50% to EUR1.05bn (US$1.16bn), while revenue also fell 6.4% to EUR28.1bn after what the manufacturer describes as a "degradation in demand."
Groupe Renault contained its first half sales decrease at -6.7% in the first half 2019 (1.94m units sold) in a global market down -7.1%.
"In a tougher than expected environment, the Group stayed its course and achieved a level of performance in line with its expectations for the first part of the year," said Renault CEO, Thierry Bolloré.
"The launches of many new models, enhanced competitiveness and the teams' fighting spirit allow the Group to confirm its profitability objectives for the full year."
Outlook for 2019:
The global automotive market is expected to decline by around 3% compared to 2018 (-1.6% previously anticipated).
The European market is expected to be stable (excluding a hard Brexit), the Russian market to be down by 2% to 3% (versus around +3% previously) and the Brazilian market to grow around +8% (versus +10% previously).
The Group confirms its guidance for the other financial full-year 2019 objectives:
- Achieving Group operating margin around 6%
- Generate a positive automotive operational free cash flow