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.

If you liked the article, share on:

Topics: renault, profit

Comments

Recommended

November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
As BMW has already revealed, the next generation of the BMW M5 (F90) is a four-wheel drive high-performance sedan with overwhelming power output and torque at its disposal. However, it...
by - November 17, 2017
McLaren unveiled a one-off Gold - on - Black 720S at the 2017 Dubai Motor Show which will be on display throughout the entire stretch of this week’s event. The...
by - November 16, 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