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July 30, 2020

Renault records first-half net income loss of EUR7.4bn

Renault has posted a first-half net income loss of EUR7.39bn (US$8.69bn), with the result "heavily impacted" by Nissan's negative contribution of -EUR4.8bn.

By Rhodri Morgan

Renault has posted a first-half net income loss of EUR7.39bn (US$8.69bn), with the result “heavily impacted” by Nissan’s negative contribution of -EUR4.8bn.

Group sales fell 34.9% (1.26m units sold) in a global market down 28.3%, while first-half revenues amounted to EUR18.4bn (-34.3%).

After taking into account a negative impact of the health crisis estimated at around EUR1.8bn, the Group recorded a negative operating margin of -EUR1.2bn in the first half.

Given the uncertainties around the health situation, both in Europe and in emerging markets, Groupe Renault estimates it is not in a position to give reliable guidance for the full year.

“Although the situation is unprecedented, it is not final,” said Renault CEO, Luca de Meo. “Together with all of the Group’s management teams and employees, we are fully dedicated to correcting the situation through a strict discipline that will go beyond reducing our fixed costs.

“Preparing for the future also means building our development strategy and we are actively working on this. I have every confidence in the Group’s ability to recover.”

For her part, Renault deputy CEO Clotilde Delbos, added: “The health crisis we are currently going through has massively impacted the Group’s first half results and added to our pre-existing difficulties.

“The commitment of all our employees has allowed us to face this situation. This on-going engagement, the 2022 cost-reduction plan project, our liquidity reserves and of course the arrival of our new CEO, make me confident that we will be able to turn around our performance as quickly as possible.”

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