Renault raised its full-year forecast on Friday, saying its turnaround plan to boost profitability was producing results ahead of time.
Renault shares were up about 6 per cent at 0745 GMT after the firm reported 4.7 per cent operating margins in the first half of this year, compared to 2.1 per cent in the same period last year. It increased its full-year margin target to more over 5 per cent.
This news negated the impact of Renault's Russian business closures due to the Ukraine war, which resulted in a net loss of 1.357 billion euros ($1.39 billion) for the French corporation in the first half.
Renault CEO Luca de Meo said the improved margins demonstrated that the turnaround plan he implemented when he took over in 2020, which prioritised profitability above sales volume, is bearing fruit.
He stated that the company is transitioning from the emergency phase of the strategy to the reconstruction phase.
"After two years of sacrifices and a hard diet, we are now ready for the next chapter at Renault," he said on an analysts call after announcing first-half results.
Despite the hurdles that the entire industry has in procuring the microchips needed in everything from brake sensors to entertainment systems, De Meo claimed the corporation was three years ahead of schedule in meeting the plan's aims.
Renault's automobile discounts are at their lowest in a decade, according to the CEO, while higher-priced new models such as the Arkana compact SUV have increased profitability.
According to de Meo, Renault hit a 10-year high in cash generation in the first half of this year.
(Source:www.globenewswire.com)
Renault shares were up about 6 per cent at 0745 GMT after the firm reported 4.7 per cent operating margins in the first half of this year, compared to 2.1 per cent in the same period last year. It increased its full-year margin target to more over 5 per cent.
This news negated the impact of Renault's Russian business closures due to the Ukraine war, which resulted in a net loss of 1.357 billion euros ($1.39 billion) for the French corporation in the first half.
Renault CEO Luca de Meo said the improved margins demonstrated that the turnaround plan he implemented when he took over in 2020, which prioritised profitability above sales volume, is bearing fruit.
He stated that the company is transitioning from the emergency phase of the strategy to the reconstruction phase.
"After two years of sacrifices and a hard diet, we are now ready for the next chapter at Renault," he said on an analysts call after announcing first-half results.
Despite the hurdles that the entire industry has in procuring the microchips needed in everything from brake sensors to entertainment systems, De Meo claimed the corporation was three years ahead of schedule in meeting the plan's aims.
Renault's automobile discounts are at their lowest in a decade, according to the CEO, while higher-priced new models such as the Arkana compact SUV have increased profitability.
According to de Meo, Renault hit a 10-year high in cash generation in the first half of this year.
(Source:www.globenewswire.com)
