Renault Cuts 2019 Guidance on Unfavorable Economic Environment -- Update
October 17 2019 - 1:28PM
Dow Jones News
(Adds background on CEO removal, last year's revenue numbers,
details on mid-term target review)
By Kim Richters
Renault SA (RNO.FR) on Thursday cut its revenue and operating
margin guidance for the year, citing an unfavorable economic
environment and "a regulatory context requiring ever-increasing
costs".
The car maker said group revenue is expected to decline between
3% and 4%, compared with previous expectations of revenue close to
last year's 57.42 billion euros ($63.44 billion). Renault
previously cut its revenue forecast for the year in July.
Renault also cut its outlook for its operating margin to around
5%, compared with a previous forecast of around 6%.
The company's automotive operating free cash flow is forecast to
be positive in the second half of the year, while that isn't
guaranteed for the full year, the company said.
In addition to the outlook cuts, the company's new management
team will also review the company's mid-term targets from its
'Drive the Future' plan that it introduced in 2017.
Additionally, Renault reported preliminary figures for the third
quarter, with revenue of EUR11.3 billion, down from EUR11.5 billion
the same period the year before.
The company's board of directors decided last week to remove
Thierry Bollore as chief executive officer, replacing him with
Clotilde Delbos on an interim basis.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
October 17, 2019 13:13 ET (17:13 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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