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.

Renault introduces a new urban crossover in the compact car Renault Captur. In the Captur, Renault has managed to manufacture a vehicle that appears like an MPV, SUV, and hatchback rolled into one. The Renault Captur has impressive features such as the forward-set windscreen, ground clearance that is generous, wide and steeply raked tracks, plus large wheels.

It also boasts of lines that flow and accentuate its impressive proportions, complemented by the creative two-tone bodywork, color permutations, interior trims both light and dark, graphic motifs, and upholstery fabric which all help give the Renault Captur a vibrant and rich look and design. It also comes with the in-dash Renault R-Lin multimedia tablet which contains a multitude of motoring applications.

Renault Captur may be only marginally longer than the new Clio, but make no mistake about how incredibly roomy the Captur is. This is a result of the innovations done in the interior of the Captur. The rear bench seat is sliding, hence allowing balanced space for both passengers and their luggage which can be as big as 455dm3. A large glove box that is similar to a drawer and removable seat covers provide more space in the passenger compartment of the Renault Captur. These two innovations in the passenger compartment allow the driver to load up to 11 liters and make it possible to unzip the seat covers for washing.

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Topics: renault, sales



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