Improved operating margin in a
contrasted environment
- Increase
in registrations: +4.7% at 1.36 million units, notably thanks to 1.0
point market share gain in Europe.
- Group
revenues at €19,820 million, down 3.0% vs H1 2013 (+0.9% at constant
exchange rates).
- Automotive
operating profit: €348 million, compared to €211 million in H1 2013.
- Group
operating profit of €729 million (3.7% of revenues), compared to €583
million (2.9% of revenues) in H1 2013.
- Negative
Automotive operational free cash flow: -€360 million (including a
negative contribution of €861 million from the working capital
requirement).
Carlos Ghosn, Chairman and Chief
Executive Officer of Renault, said: “Thanks to the success of its recently
launched models, Renault’s registrations and profit improved in the first
half. These results are in line with the full-year target.”
With 1,365,988 vehicles sold worldwide at end-June 2014, Renault group PC+LCV
registrations increased by 4.7% in a global market up 4.1% in the first-half
2014. In the first-half of the year, the strong performance of the Group in
Europe, driven by the success of new models, yielded to market share gains of
1.0 point, and enabled the Group to offset the sharp slowdown in its main
emerging markets.
Group revenues in H1 2014 came to €19,820 million,
down 3.0% compared to H1 2013.
Automotive contributed €18,739 million to revenues, a decrease of 3.3%
compared to H1 2013. This decline is primarily the result of an adverse
currency impact. Despite an increase in registrations, the volume effect was
also negative reflecting an adjustment in inventories of independent dealers.
At the same time, the Group benefited from an increase of sales to partners
and posted a positive price effect, resulting from its policy in emerging
markets to ease the weakness of foreign currencies.
Group operating profit stood at €729 million, compared to
€583 million in H1 2013, representing 3.7% of revenues (2.9% in H1 2013).
Automotive operating profit increased €137 million to €348 million,
representing 1.9% of revenues. This improved result was achieved despite a
negative foreign currency and mix/price/product enrichment effects, due to
higher volumes in Europe and strict cost controls.
Sales Financing contributed €381 million to Group operating profit,
compared to €372 million in H1 2013 reflecting an increase in average
outstandings and a stronger contribution from services. The cost of risk
(including country risk) remained under control at 0.47% of average
performing loans, compared to 0.40% in H1 2013.
Other operating income and expense
items came to -€265
million, mainly due to a provision for the competitiveness agreement in
France and impairment of assets.
As a result, operating income
came to €464 million, compared to -€249 million in H1 2013.
The contribution of associated
companies, mainly Nissan, came to €725 million in H1 2014, compared to
€749 million in H1 2013.
Net income came to €801 million and Group
share to €749 million (€2.75 per share compared with €0.14 per share in H1
2013).
Automotive operational free cash
flow in the period was negative at €360 million, including a negative
€861 million change in the working capital requirement.
At end-June 2014, total inventory
(including the independent dealer network) represented 62 days of sales
compared to 67 at end-June 2013.
The Automotive division’s net
cash position remains positive at €791 million at end-June 2014,
down €970 million compared to December 31, 2013.
2014 OUTLOOK
In the first half, trends in
Group’s key markets were contrasted. While its main emerging markets were
slowing down, the European market recovery was stronger than foreseen. In
this still uncertain environment, the Group expects a continuing decline in
the market of its emerging countries, but upgrades its 2014 expectations for
the European market at +3% to 4% from +2% to 3% previously.
In this context Renault confirms
its guidance:
- increase
registrations and Group revenues (at constant exchange rates),
- improve
Group operating profit and that of the Automotive division,
- achieve
positive Automotive operational free cash flow.
Renault half-year consolidated
results
€
million
|
H1
2014
|
H1
2013
|
Change
|
Group
revenues
|
19,82
|
20,441
|
-3.0%
|
Operating
profit
|
729
|
583
|
146
|
% of revenues
|
3.7%
|
2.9%
|
+0,8 pts
|
Other
operating income and expense items
|
-265
|
-832
|
567
|
Operating
income
|
464
|
-249
|
713
|
Net
financial income
|
-124
|
-139
|
15
|
Contribution
from associated companies
|
725
|
749
|
-24
|
o/w:
Nissan
|
789
|
766
|
23
|
AVTOVAZ
|
-55
|
-10
|
-45
|
Current
and deferred taxes
|
-264
|
-264
|
0
|
Net
income
|
801
|
97
|
704
|
Net
income, Group share
|
749
|
39
|
710
|
Automotive
operational free cash flow
|
-360
|
-31
|
-329
|
|
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