Renault has recorded third-quarter revenue down 1.6% to EUR11.3bn (US$12.6bn), while selling 4.4% fewer vehicles for a total of 852,198 in a global market which fell 3.2%.
Excluding Iran, the decrease would have been -1.8% in a market down -2.3%.
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In Europe, the Group recorded a -3.4% decline in sales in a market up +2.4%. The decrease is partly due to a high comparison basis related to the introduction of the WLTP for passenger cars in September, 2018 and the awaiting of the full availability of the new Clio in Europe.
In regions outside Europe, the Group over-performed the market. In a market down -6.2%, the Group recorded a -5.4% decrease in sales, mainly due to the decline in markets in Turkey (-21.7%), Argentina (-30.0%), and the end of sales in Iran since August 2018 (23,649 vehicles sold in the third quarter 2018). Excluding Iran, sales would have been down -0.3%.
In Eurasia, market share increased by +1.8 points. Group sales increased by +5.1% despite the fall of the Turkish market. Sales volume increased in Russia (+6.1%) in a market down -1.2%, thanks in particular to the launch of Arkana and the continuing success of Lada products.
In the Americas, market share was up +0.2 points. Brazil saw its volumes increase by +5.6% but Argentina recorded a fall of -37.7%.
In the China region, Group’s volumes fell -15.5% in a market down -5% awaiting the launch of New Captur and Renault City K-ZE, the new electric city car.
Avtovaz contribution to Group revenues amounted to EUR791m in the quarter, up +26.2%, after taking into account a positive exchange rate effect of EUR59m. At constant exchange rates, revenues would have been up +16.7%.
Outlook 2019:
In 2019, the global automotive market] is expected to decline by around -4% compared to 2018 (versus around -3% previously anticipated).
The European market is expected to be between 0% to -1% (versus stable previously), the Russian market to be down by around -3% (versus -2% to -3% previously) and the Brazilian market to grow around +7% (versus around +8% previously).
On 17 October, 2019, Groupe Renault revised its guidance:
- Published Group revenues should decline between -3% and -4%
- Group operating margin should be around 5%
- The automotive operating free cash flow should be positive in H2 while not guaranteed for the full year
