Renault Dazzles Too Helped By New Products.
Future Clouded Though By Mitsubishi, AvtoVAZ.
Renault improved profits impressively too thanks to its refreshed model line-up and European market strength, although its financial performance was overshadowed by compatriot PSA Group.
First half operating profit zoomed 41 per cent to €1.54 billion from the same period last year, while automotive division profits accelerated 65 per cent for a a4.7 per cent margin.
Renault is benefitting from its product offensive with new versions of the Espace and Scenic people movers, the Megane, and new ones like the Kadjar SUV.
Evercore ISI likes what it sees.
“With lower exposure to the UK and strong new product momentum; Renault remains our preferred mass market play on a European recovery,” said Evercore ISI analyst Arndt Ellinghorst.
Some analyst worried though that Renault’s profit progress may be jeopardised by its involvement with Mitsubishi, and the fact that Russian AvtoVAZ will join the group at year end.