First-half 2014 financial results: Renault group PC+LCV registrations increased by 4.7% in a global market up 4.1% in the first-half 2014
With 1,365,988 vehicles sold worldwide at end-June 2014, Renault group PC+LCV registrations increased by 4.7% in a global market up 4.1% in the first-half 2014. In the first-half of the year, the strong performance of the Group in Europe, driven by the success of new models, yielded to market share gains of 1.0 point, and enabled the Group to offset the sharp slowdown in its main emerging markets.
Group revenues in H1 2014 came to €19,820 million, down 3.0% compared to H1 2013.
Automotive contributed €18,739 million to revenues, a decrease of 3.3% compared to H1 2013. This decline is primarily the result of an adverse currency impact. Despite an increase in registrations, the volume effect was also negative reflecting an adjustment in inventories of independent dealers.
At the same time, the Group benefited from an increase of sales to partners and posted a positive price effect, resulting from its policy in emerging markets to ease the weakness of foreign currencies.
Group operating profit stood at €729 million, compared to €583 million in H1 2013, representing 3.7% of revenues (2.9% in H1 2013).
Automotive operating profit increased €137 million to €348 million, representing 1.9% of revenues. This improved result was achieved despite a negative foreign currency and mix/price/product enrichment effects, due to higher volumes in Europe and strict cost controls.
Sales Financing contributed €381 million to Group operating profit, compared to €372 million in H1 2013 reflecting an increase in average outstandings and a stronger contribution from services. The cost of risk (including country risk) remained under control at 0.47% of average performing loans, compared to 0.40% in H1 2013.
Other operating income and expense items came to -€265 million, mainly due to a provision for the competitiveness agreement in France and impairment of assets.
As a result, operating income came to €464 million, compared to -€249 million in H1 2013.
The contribution of associated companies, mainly Nissan, came to €725 million in H1 2014, compared to €749 million in H1 2013.
Net income came to €801 million and Group share to €749 million (€2.75 per share compared with €0.14 per share in H1 2013).
Automotive operational free cash flow in the period was negative at €360 million, including a negative €861 million change in the working capital requirement.
At end-June 2014, total inventory (including the independent dealer network) represented 62 days of sales compared to 67 at end-June 2013.
The Automotive division’s net cash position remains positive at €791 million at end-June 2014, down €970 million compared to December 31, 2013.
Source, please read more.
