Positive first half for Renault

Industry experts and pundits predicted a tough year for the automotive sector this year. In many cases this is definitely the case, premium brands are still feeling the pinch of the lack of available consumer finance. Mass volume brands such as Ford, Vauxhall and Renault appear to have benefited as consumers look to downsize or not move into the premium sector. For the first 6 months of this year Renault has announced a very positive net income of 1,253 million Euros, which is up 52% year on year. This net income sits alongside an automotive operational free cash flow of 121 million Euros. In the first half of the year Renault sold 1.3 million cars, which is an increase of nearly 2% compared to last year. The increase in sold cars has also helped increase revenue at group level, a 7.3% increase which equates to revenues of 21,101 million Euros. Last year Renault’s net income was reported 823 million Euros, this year it is reportedly 1,253 million Euros, which is a 52% increase year on year. Operating income is up €54 million totalling €772 million in first-half 2011. Carlos Ghosn, Chairman and CEO of Renault, said: "The sales record in the first half confirms the Group’s strong potential for international growth. The financial results were impacted by external events, including supply constraints, which will subside in the second half, and a considerable increase in the cost of raw materials. In this context, the Group confirms its objective of operational free cash flow above €500 million for 2011." Newtownards used Renaults garage has told us that they were initially concerned about this year, with the withdrawal of the scrappage scheme a major concern. Looking at these figures they are happy that Renault as a manufacturer is heading in the right direction.