H1 net profits up 56% at Renault
The carmaker saw revenues rise 7.3% to €21.1bn, attributed mainly to an improvement in the sales mix and an increase in volumes.
However it said that the tsunami had impacted on H1 group operating margin by an estimated €150m and forecast that the H2 operating margin would be hit by an extra €50m.
Commenting on the results, Carlos Ghosn, chairman and CEO of Renault, said: ‘The sales record in the first half confirms the group’s strong potential for international growth. The financial results were impacted by external events, including supply constraints, which will subside in the second half, and a considerable increase in the cost of raw materials. In this context, the Group confirms its objective of operational free cash flow above €500m for 2011.’
Renault has predicted the global light vehicle market will grow 3-4% over the whole of 2011, with emerging markets remaining the main growth drivers, while Europe will remain stable or even contract slightly (-2%) for the year as a whole, with a 4% to 6% decrease in the French market.
It is expected that Renault will post higher sales volumes and revenues than in 2010, adding: ‘Supply constraints are expected to subside gradually in the second half, enabling a strong recovery in production from September.’