ZCZC
BCN-40
FRANCE-AUTO-RENAULT-EARNINGS
Renault profits dragged down by Nissan plunge
PARIS, July 27, 2018 (BSS/AFP) – French auto giant Renault on Friday said
it saw its net profit shrink by nearly a fifth in the first half of the year,
as a result of a lower contribution from its strategic partner Nissan.
Operating margin for the first six months of the year increased meanwhile
to a record 6.4 percent of sales, said a statement from the group that owns
the Renault, Dacia, Lada, Samsung and Alpine brands.
Renault saw its net profit go down 18.6 percent to just under 2 billion
euros ($2.3 billion) from January to June, the statement said.
“This decrease came from Nissan’s contribution, down 483 million (euros),
which notably benefited from a capital gain last year,” it added.
Renault-Nissan is a partnership based on cross-shareholdings between the
Renault and Nissan companies.
Carlos Ghosn, who is also chief executive officer of both Renault and
Nissan, heads the alliance.
Nissan had on Thursday reported a 14.1 percent drop in first quarter net
profit to 115.8 billion yen ($1.05 billion).
In a teleconference, Renault’s financial director Clotilde Delbos hailed
the company’s “record results despite headwinds”.
She pointed to rising costs of raw materials — particularly steel —
alongside unfavourable exchange rate movements and the impact of new
accounting regulations as factors that pulled Renault’s results down.
Excluding the impact of the new rules under the IFRS 15 system, “the
operating margin would have reached 6.6″ percent”, the statement said.
“The group posted new record results for a first half-year in a volatile
economic environment,” CEO Ghosn said, according to the statement.
“The results give us confidence in the achievement of our guidance for the
year,” he added.
Renault expects to see its operational margin remain above 6 percent for
the rest of the year, even as Delbos said the firm was traditionally
“prudent” in its outlook.
BSS/AFP/HR/1430