Renault “Not Dying, Unlike Some Others On The Ward”

If you look at half year sales in Europe, then you see Renault as the worst performer of the volume makers. With EU sales down 17.09 percent, the Renault Group took a bigger hit than European patients Opel (- 15 percent) and PSA (-13.9 percent). Even troubled Fiat was doing better than Renault, by a hair (-17.08 percent for Fiat.) Whereas the percentages carry the smell of death, Renault's half year results smell downright rosy. The Renault Group reported a half year group profit of €1.02 billion ($1.26 b) before tax, and €786 million after tax. While this is nowhere near the X-rated  profits of Volkswagen, or those of Daimler, a billion euro is a billion euro, and it is a miracle when your home market collapses. Why the difference? Renault appears the best managed carmaker in trouble.  Sure, most of the profit (€630 million) comes from Renault's shares in other companies, notably Nissan. As Volkswagen and Daimler will confirm, global diversification is a good hedge against regional calamities. Sure, a big chunk of the money (€395 million) comes from sales financing. A well run bank that does not dabble in mortgages or currency gambles is beneficial to a carmaker's bottom line. Still, Renault has eked out €87 million from making and selling cars, which is, it bears repeating, a miracle. Astounded analysts expected Renault's auto manufacturing business to report a loss. "The patient is not well, but not dying either, unlike some others on the ward," Bernstein analyst Max Warburton told Reuters. from The Truth About Cars http://www.thetruthaboutcars.com

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