Renault’s profits plunge in first half

French auto group Renault reported a profit plunge on Friday owing to charges for halting its activities in Iran and for restructuring in France.

By (AFP)

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Published: Sun 28 Jul 2013, 1:12 AM

Last updated: Fri 3 Apr 2015, 7:57 AM

The group reported a net profit for the first six months of the year of €39 million ($52 million) compared with €746 million at the same time last year.

The exceptional charges helped to push the operating result to a loss of €249 million from a profit of €519 million last time.

The price of shares in the group rose by 3.70 per cent to €61.89 despite the profit drop because the board stood by its outlook for the year, market sources said.

Sales fell by 2.4 per cent to €20.4 billion, the group said in a statement, but it stood by its outlook for the full year despite what it termed a “tougher environment than expected”.

The company took a charge this year of €512 million for its activities in Iran which have been hit by a hardening since July 1 of international sanctions which now include the auto sector.

Finance director Dominique Thormann told a Press conference that “there is an effective halt to activity” in this country.

Renault is the second-biggest French auto group after struggling Peugeot Citroen which early last year interrupted its activities in Iran.

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