Renault first-half net profit up 56% to 1.2 bln euros
French car maker Renault saw its first-half profits soar to 1.2 billion euros despite losses caused by the earthquake in Japan, it said Thursday in an earnings statement.
Net profit rose 56 percent to 1.25 billion euros ($1.72 billion) on record sales that rose 7.3 percent to 21.1 billion euros, while the earthquake which hit car major parts suppliers cost Renault 150 million euros.
"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," said chief executive Carlos Ghosn.
He said in the statement the group maintained its outlook for operational free cash flow -- a key measure of profitability -- at more than 500 million euros this year.
"The supply constraints stemming from the Japanese tsunami had an unfavourable impact on the operating margin of automotive of an estimated 150 million euros in the first half," the statement said.
The company said it expected the consequences of the earthquake would cost it a further 50 million euros this year.
"Supply constraints are expected to subside gradually in the second half, enabling a strong recovery in production from September."
© 2011 AFP