Renault Posts Record Profitability

Renault posts record profitability

PARIS,(Pakistan Point News - APP - 28th july,2016) - Renault on Thursday posted a 7.5 percent increase in net profit in the first half, a result the French automaker said was a record in terms of profitability. Net profit came in at 1.5 billion Euros ($1.66 billion) on sales of 25.2 billion euros, up 13.5 percent, as strong sales of new car models kicked in. "Success of our new models, our regional diversification and the efforts of all our employees have allowed the group to set a new record for its first half operating margin and to have confidence in the outlook for the full year", the company's chairman Carlos Ghosn said in a statement.

Renault's operating margin was 6.1 percent of sales, an increase of 1.2 points over the same period last year. For the full year, Renault is targeting higher sales, a better operating margin than in 2015 and a positive free cash flow from the automobile division, it said. The French group does, however, now expect the world's automobile market to provide a less favourable environment than previously thought, with global car market growth now estimated at 1.7 percent this year, down 0.3 points from Renault's previous estimate. The Brazilian car market is expected to decline by 15 to 20 percent and Russia by 12 percent, but China and India are both expected to rise. Renault's home market France is likely to expand by five percent, as is the rest of Europe.