Renault first-half profit leaps on higher volume

James Marshall
July 29, 2017

The company continued to increase volume and received a larger payout from its holding in Nissan Motor Co, sending revenue up 17 percent to 29.54 billion euros, from 25.19 billion euros this time previous year.

Operating profit also came in at a record 1.8 billion euros, or 6.2 percent of sales. That compares with the 1.85 billion-euro average of three analyst estimates compiled by Bloomberg.

Sales were up seven percent at the French-Japanese alliance thanks to a strong performance by Nissan in Japan and Renault in Asia and Africa.

Renault's worldwide vehicle sales rose 10% in the first half, far outpacing the 2.6% increase of the wider market. With sales of 5.2 million cars between January and June this year, it has meant the company took a clear lead ahead of faltering second-place Volkswagen. It's also expanding in emerging markets like China, where it plans to acquire half of Brilliance China Automotive Holdings Ltd.'s unprofitable minibus unit, and Brazil, where it's getting ready to introduce the low-priced Kwid vehicle.

Net income surged 58 percent to 2.38 billion euros, helped by 1.29 billion euros in profit from Renault's 43.4 percent Nissan stake - up 72 percent on last year's contribution.

The automaker lifted its market forecasts in Russian Federation and Brazil earlier this month. That auto sold 122,000 units so far this year, a whopping 1,656-percent increase on the previous year.

Other reports by Click Lancashire

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