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Renault: Profit drops by 37%

The French automaker closed the year 2018 with a decline in its results. In fact, the group’s turnover was 57.4 million euros, down 2.3% year-on-year, despite the 3.2% increase in sales to 3% (9 million units).

This decline in sales is explained by the impact of the exchange rate. Excluding the currency impact, the group would generate a turnover of 2.5%, says the manufacturer.

For its part, the Group’s operating margin reached € 3.6 billion, representing 6.3% of sales compared with 6.6% in 2017. This margin would have been 6.5% excluding the impact of the ‘IFRS 15, according to the manufacturer.

The group also recorded operating income of 2.98 billion euros against 3.8 billion euros a year earlier. This decline is explained by the impact of the crisis in Argentina and provisions related to the end-of-career program in France, he says. In this context, the net result falls to 3.45 billion euros against 5.3 billion euros a year ago. This decrease comes from the lower contribution of Nissan, down 1.28 billion euros. Thus, the manufacturer sees his profit fall by 37% to 3.3 billion euros.

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