Latest Automotive News

Subscribe in a reader




Auto Price Quote
Get a free auto price
quote from Edmunds!

Renault says profit fell 20 per cent in 1st half as European car sales fell

Email   small font medium font large font

Google
 
Web AutoNews24h.com

PARIS (AP) _ French carmaker Renault SA said Wednesday that its first-half earnings fell 20 per cent as car sales in Europe dropped and exports were hurt by the strong euro.

Chief executive Carlos Ghosn is trying to turn around Renault and sister company Nissan Motor Co. with the launch of new models.

Net profit fell to 1.32 billion euros (US$2.79 billion) from 1.65 billion euros a year ago. Sales fell 1.4 per cent to 20.56 billion euros ($28.26 billion).

The operating margin rose to 3.5 per cent of revenues compared with 2.8 per cent a year earlier. Renault attributed the gains to cost controls and sales outside Europe.

The results are in line with analysts' forecasts.

A poll by Dow Jones Newswires had forecast net profit at 1.31 billion euros ($1.81 billion) and an operating margin of 3.1 per cent.

Last year, he called 2006 a ``year of transition'' and introduced a target of a 3 per cent operating margin for 2007.

Renault said Wednesday it is sticking with this target.

Ghosn is pinning his hopes on the rapid expansion of the low-cost Logan sedan _ launching this year in India, Iran and Brazil _ as well as the launch of a new Twingo super-mini and Laguna upscale sedan in the final quarter.

Nissan said Tuesday its April-June quarter profit fell 16 per cent because of higher material costs and a shift among consumers away from trucks and other vehicles that deliver heftier profits.

Ghosn said the Tokyo-based automaker promised revival with models that have rolled in showrooms recently, such as the Altima and Infiniti G35, and more models in the pipeline. Nissan is launching 11 new global products this year.

Renault shares closed down 3.5 per cent at 108.10 euros ($148.56) in Paris.

Receive the latest automotive news by email!

Enter your email address:


Find the new car you want on cars.com

Related news
PARIS (AP) _ Renault SA's chairman said the French automaker, which posted a 36 per cent fall in first-half net profit Thursday, was performing far below its potential. ``I consider ...
PARIS (AP) _ French automaker PSA Peugeot-Citroen reported Wednesday that first-half earnings rose 60 per cent on rising demand, better pricing and the rollout of new models. Europe's second-largest car maker after Volkswagen ...
PARIS (AP) _ Renault SA is counting on the success of its new Laguna upscale sedan to help turn around the French carmaker's fortunes, deputy Chief Executive Patrick Pelata told Le Monde ...
PARIS (AP) _ PSA Peugeot Citroen reported a 37 per cent drop in 2005 net profit as fierce price competition and weaker car sales in Europe, higher raw material prices and an ...
French carmaker Renault SA said Friday that vehicle sales rose 2.2 per cent last year and predicted growth of at least 10 per cent in 2008 as the company's turnaround strategy gathers ...
FRANKFURT, Germany (AP) _ German automaker Audi AG said Tuesday consumer willingness to pay for luxury models helped boost its net profit by more than a third in the first half of ...
FRANKFURT, Germany (AP) _ Car maker Audi AG, the luxury arm of Volkswagen AG, said Thursday that demand for its A3 and A6 models helped push up sales in June and throughout ...
FRANKFURT, Germany (AP) _ Luxury car maker Audi A-G says its sales and profit soared during the first half of the year. The unit of Volkswagen A-G says the results put it ...

Best Investment Newsletter

- 46% in 2008

- invest in the best performing US stocks only and sell them when the uptrend is over

- very easy to follow, simple buy/sell signals

- no need to have investing or trading experience

Find More Now!


Renault says profit fell 20 per cent in 1st half as European car sales fell
> © 2006-2011 AutoNews24h.com except where otherwise noted