Renault logged 15% jump in operating margin in 1st half 2013

Article by Anita Panait, on July 27, 2013

Renault posted a 15-percent jump in earnings before interest, taxes and one-time items (operating margin) in the first half of 2013 to EUR583 million ($774 million), compared to EUR508 million in the same period in 2012. The French carmaker, however, suffered an operating loss of EUR249 million in the first half of 2013, no thanks to one-time costs of EUR832 million, including a provision of EUR512 million for its business in Iran.

Renault posted an operating profit of EUR545 million in the first six months of 2012. The carmaker’s bottom line was weakened by lost business in Iran as well as the bankruptcy of electric car infrastructure company Better Place.

Renault’s first-half net income (group share) fell to EUR39 million from EUR734 million in the first six months of 2012. Renault’s automotive division logged a 0.9-percent decline in revenues to EUR20.4 billion, mainly due to a negative currency effect and a drop in registrations.

The carmaker said that the drop in registrations was reduced by the surge in independent dealer inventories.

The carmaker’s auto division's operating margin soared to 2.9 percent from 2.5 percent. Renault chief executive Carlos Ghosn reiterated the carmaker’s full-year 2013 goals, including a positive auto division operating margin and cash flow.

He said in a statement Renault is on track to achieve its objectives for 2013. Philip Watkins, a London-based Citi analyst, attributed Renault’s "surprisingly strong results” to tight discipline on pricing and costs.

The French carmaker is shielded from the current economic crisis in Europe thanks to its 43.4-percent stake in Nissan; its growth at its low-cost Dacia brand; and a timely push into emerging markets.

Topics: renault, sales

If you liked the article, share on:

Comments

Recommended

It’s pretty neat if you possess something of an extraordinary breed like, say, the Pagani Huayra. There are after all just a total of 100 units ever been built by...
by - April 28, 2017
If you’ve ever visited an arcade, chances are you have already seen a Logitech G920 wheel. If that doesn’t ring a bell, it’s the steering wheel that you use when...
by - April 28, 2017
Toyota Motor Corporation disclosed that it will be bringing two of its Mirai fuel cell vehicles to China by October of this year. Tests will then be conducted on these...
by - April 28, 2017
Jaguar fans, as well as auto enthusiasts in general, has a reason to celebrate this week as the brand gave everyone a peek of the new 2018 XF Sportbrake. This...
by - April 28, 2017
BMW has revealed that its i brand has partnered with TED in order to launch a worldwide search of unique ideas under the title “NextVisionaries.” This brand has long been...
by - April 28, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries