- Renault reports operating margin of
592 million (AU $985 million) (2.7% of
revenues) in first-half 2006, confirming its forecast of 2.5% for full year
2006, despite external headwinds : higher energy costs and higher raw material
costs
- The deployment of Renault Commitment 2009 is going ahead as announced on
February 9. Our foreseen milestones for Renault’s operating margin are 3.0% for
2007, 4.5% for 2008 and 6% for 2009
In first-half 2006, the Renault group's sales declined by 3.2% on first-half
2005 to 1,315,351 units, reflecting contrasting levels of performance:
- In the European market, sales totaled 951,339 vehicles down 7.6%, primarily
as a result of the selective commercial policy introduced in 2005 to reduce the
low value sales. This policy was stepped up at the start of the year. Despite
the unfavorable product cycle, Renault reported strong sales of Clio III,
launched in September 2005 and voted Car of the Year 2006. With 250,955 units
sold, Clio remained the best-selling car in its segment in the European market.
- Outside Europe, as announced at the beginning of the year, Renault pursued
its development in first-half 2006 and reported a 10.5% increase in sales, to
364,012 units. Sales outside Europe accounted for 28% of total Renault sales
worldwide, up 4 percentage points on last year. This increase was driven by the
three Group brands: Renault, Dacia and Samsung .
Operating margin of 2.7% in first-half 2006
On a consistent basis, Renault reported revenues of
21,547 million
(AU $35,879 million), up 0.4% on first-half 2005.
The contribution of the Automobile Division to group revenues rose
0.2% to
20,560 million (AU $34,235 million). The decline in sales on the
European market was offset by continued sales development outside Europe, the
start of SM3 exports by Renault Samsung Motors for Nissan, a slightly positive
currency effect (mainly in South Korea and Mercosur) and other Group businesses
(sales of spare parts, powertrains and built-up vehicles to partners).
On a consistent basis, the sales financing subsidiary, RCI Banque,
contributed
987 million (AU $1.643 billion) to revenues, up 3.9% on first-half
2005 due to growth in insurance services and average loans outstanding.
Notes: Amounts in dollars are translated for the convenience of the reader
at the foreign exchange rates of 1 Euro/1.665 dollar.
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