Renault’s earnings hurt by crisis
PARIS - Agence France-Presse
Renault Chief Operating Officer Carlos Tavares poses with the new Clio IV. AFP Photo
Renault said on July 27 that its first-half earnings had been hit hard by the economic downturn in Europe but a strong international performance enabled the French car-maker to avoid the heavy losses incurred by its rival Peugeot.Net profit at the group for the first six months of the year fell 39 percent to 746 million euros ($917.1 million) with Renault’s international partners Nissan, AB Volvo and Avtovaz contributing 630 million of that bottom-line total.
Overall sales were relatively stable at 20.9 billion euros, down 0.8 percent on a year earlier.
“Continued growth internationally was not enough to offset the weakness of the European market,” the company said in a statement.
Renault admitted that it had lost market share in Europe and that its order book was weak, but it maintained its forecast of a slight upturn in sales for the full year, “provided there is no further downturn in the European market.” The group said it was also keeping a close eye on some of its suppliers in Europe, some of whom were said to be in financial difficulty, and a slowdown in some emerging markets, notably Latin America.