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Renault Posts Hefty H1 Loss, Volume Down; Confirms Cost Reduction View

French automaker Renault SA (RNSDY.PK,RNSDF.PK,RNT.L) reported Thursday that its first-half net loss Group share totaled 7.29 billion euros, compared to profit of 970 million euros last year. Loss per share were 26.91 euros, compared to profit of 3.57 euros a year ago.

The latest results were heavily impacted by Nissan's negative contribution of 4.82 billion euros. Further, the negative impact of the Covid-19 health crisis was estimated at around 1.8 billion euros.

After taking into account a negative impact of the health crisis, the Group recorded a negative operating margin of 1.20 billion euros in the first half, compared to profit of 1.65 billion euros a year ago.

First-half revenues amounted to 18.43 billion euros, down 34.3 percent from 28.05 billion euros last year. At constant exchange rates and perimeter, the decrease would have been 32.9 percent.

Automotive excluding AVTOVAZ revenues amounted to 15.73 billion euros, down 36.6 percent.

Group sales fell 34.9 percent in the first half to 1.26 million units, in a global market down 28.3 percent.

The company recorded high level order book at June 30.

Looking ahead, Renault estimates that it is not in a position to give a reliable guidance for the full year due to the uncertainties around the health situation, both in Europe and in emerging markets.

Furthermore, the company confirms its target to achieve 600 million euros of cost reduction this year, representing 30 percent of the 2o22 plan project cost savings.

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