French carmaker Renault has improved its financial outlook for this year, mainly thanks to the success of new models and cost cutting. It now expects its operating margin to reach seven to eight per cent this year, up from an earlier estimate of six per cent.
Performance above expectations
“Renault Group is achieving record levels of performance,” said chief executive Luca de Meo. “This is why the Renault group is improving its full-year financial outlook, thanks to its ongoing cost-cutting efforts and a product offensive that is unprecedented in the group’s history,” he added.
Rescue in the form of an increase in selling prices
The carmaker will publish its results for the first half of this year on July 27. For the whole of last year, the company fell into a loss of 700 million euros (about 16.6 billion kronor) due to its exit from the Russian market, compared with a profit of nearly 967 million euros the year before. But the company’s revenue rose 11.4 percent to 46.4 billion euros last year, mainly due to higher sales prices.
In this year’s first quarter, the carmaker increased sales 30 percent year-on-year to 11.5 billion euros. This was helped by the success of the Megane E-TECH Electric, Arkana and Austral models.
Source Czech Press Office
