World Bulletin / News Desk
French auto giant Renault on Friday said it saw its net profit shrink by nearly a fifth in the first half of the year, as a result of a lower contribution from its strategic partner Nissan.
Renault saw its net profit go down 18.6 percent to just under 2 billion euros ($2.3 billion) from January to June, the statement said.
"This decrease came from Nissan's contribution, down 483 million (euros), which notably benefited from a capital gain last year," it added.
Renault-Nissan is a partnership based on cross-shareholdings between the Renault and Nissan companies.
Carlos Ghosn, who is also chief executive officer of both Renault and Nissan, heads the alliance.
Nissan had on Thursday reported a 14.1 percent drop in first quarter net profit to 115.8 billion yen ($1.05 billion).
In a teleconference, Renault's financial director Clotilde Delbos hailed the company's "record results despite headwinds".
She pointed to rising costs of raw materials -- particularly steel -- alongside unfavourable exchange rate movements and the impact of new accounting regulations as factors that pulled Renault's results down.
Excluding the impact of the new rules under the IFRS 15 system, "the operating margin would have reached 6.6" percent", the statement said.
"The group posted new record results for a first half-year in a volatile economic environment," CEO Ghosn said, according to the statement.
"The results give us confidence in the achievement of our guidance for the year," he added.
Renault expects to see its operational margin remain above 6 percent for the rest of the year, even as Delbos said the firm was traditionally "prudent" in its outlook.Last Mod: 27 Temmuz 2018, 11:24