Renault logged EUR729 million in operating profit in 2012

Article by Anita Panait, on February 15, 2013

French carmaker Renault posted EUR729 million in earnings before interest, taxes and one-time items for 2012, according to its recently disclosed financial results. Renault operating profit for 2012 was essentially higher than the EUR698-million average of 15 analyst estimates compiled by Bloomberg News. Renault’s automotive unit also managed to become debt-free in 2012 as it cut back on spending and abstained from reducing vehicle prices.

According to the carmaker’s financial results for 2012, its automotive unit's net cash position was EUR1.49 billion ($2 billion) at the end of 2012, compared with a net debt of EUR299 million at the end of 2012. Renault chief executive Carlos Ghosn said in a statement that the carmaker Renault benefited from the growth outside Europe.

He noted that the difficult environment in Europe and France forced them to implement a “rigorous sales policy.” Ghosn said that the Renault group is pursuing a strategy of global growth while boosting its financial situation.

Jose Asumendi, an analyst at JPMorgan Chase & Co., described Renault’s financial figures as good results, noting that the outlook of positive operational free cash flow and positive operating margin is reassuring for the investors.

According to Renault Chief Financial Officer Dominique Thormann, the carmaker’s auto operations logged EUR25 million in losses in 2012, in contrast to EUR330 million in profits a year earlier. Asset writedowns at the unit reached EUR279 million.

Thormann told analysts that reorganization costs in 2012 reached EUR110 million, while currency effects slashed EUR184 million from operating profit. Renault lost market share in Europe in 2012 but reported gains in Latin America and Russia.

The carmaker’s sales in Europe dropped 19 percent, worse than the regional industry's 7.8 percent decline. Renault is hoping that its new models – like the revamped Clio subcompact and budget Dacia Logan – will enable it to recover its European market share.

Topics: renault, profit

If you liked the article, share on:

Pin It

Comments

Recommended

South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 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