Renault Profit Advances, But Margins Lag Peugeot’s.
Government Will Sell Extra Five Per Cent Stake.
Renault’s financial results would have looked better if they had preceded rather than followed compatriot Peugeot’s sparkling numbers.
Renault operating profit rose to a healthy looking €1.07 billion from €729 million a year earlier, while profit at the automotive division accelerated 89 per cent to €656 million, bringing the operating profit margin to 3.1 per cent. That looks good until you consider Peugeot’s five per cent performance.
Renault’s target for 2015 is an improvement on last year’s 3.9 per cent margin.
Analysts said the second half for Renault will be difficult as it gets ready for new products like the Kadjar, Megan and Scenic. They said Renault’s performance was fine, but questioned their quality because of lower depreciation charges and smaller cost savings than last year.
Renault CEO Carlos Ghosn praised the performance.
“The results put the group in a favourable position to reach its revenue growth and operating margin targets,” Ghosn said.
Meanwhile, the French government said it would sell the five per cent stake in Renault it acquired ahead of its annual meeting April 30 to block plans to opt-out of the law that doubles voting rights for longer-term shareholders. That would bring the stake back to 15 per cent. Timing of the sale was not revealed.
No comments yet.