Renault has issued its second profits warning in five months, saying that operating margins in the second half of this year could fall below the 1.6% level achieved in the first six months of 2001.
In a statement issued today the company said: “Despite an increase in revenues generated by the other activities of he automobile division (network business, used cars), third-quarter revenues grew slower than expected. Against this background, operating margin in the second half could be lower than in the first half of the year.”
As a result Renault expects net income for the full year to be “on a par” with the previous year.
“Cost-cutting will be intensified and non-priority investments significantly reduced,” the company said.
In the year-to-date Renault's consolidated revenues came to 271 billion euros (£16 billion), up 6.8%. In the third quarter they stood at 8.2 billion euros (£5.2 billion), a rise of 9.7%, with 9.6% for the automobile division, 12.6% for the finance division and 7.5% for other operations.