Renault reports successful financial results

The year has started well for French car manufacturer Renault, which has reported a group operating margin of four per cent and net income of €823million.Worldwide sales for the first half of the year grew by 21.7 per cent to take the group’s global passenger car and light commercial vehicle market share to 3.8 per cent. Meanwhile, group revenues expanded to €19,668million and the group operating margin came in at €780million, which compared favourably to the negative €620million in the first half of 2009.According to Renault president and CEO Carlos Ghosn, the group is reaping the rewards of its cost-saving measures.“The actions we have undertaken are paying off. All group brands and regions increased market share,” he said. “We also controlled our costs, benefiting from synergies within the Alliance. In an uncertain environment in the second half of 2010, the Group will continue to focus on its key target of generating positive free cash flow for the full year.”Not only are these results encouraging, but Renault believes the outlook is bright for the future. It is expecting the global automotive market to grow by around eight per cent in 2010 compared to 2009 even though the European market is estimated to decline by seven-nine per cent. With its first half performance and results ahead of plan, its objectives remain to generate positive free cash flow and increase market share.

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