Renault stalls in tough trading
By Emma Vandore |
February 12, 2010, Friday
|
Print Edition
Print Edition
FRENCH car maker Renault SA said yesterday that it lost 3.07 billion euros (US$4.23 billion) last year, mostly in the first half, and predicted another tough year in 2010.
The full-year net loss is greater than the 2.59 billion euro forecast by analysts and compares with 2008's 571 million euro net profit. Revenue fell 10.8 percent to 33.71 billion euros in 2009.
In the second half, Renault lost 356 million euros after government scrappage schemes delayed the crisis.
"We are continuing our work on building the Renault of the post-crisis period with the pursuit of the sales offensive in Europe," said CEO Carlos Ghosn.
"Economic conditions will remain difficult in 2010."
Renault said the European car market could contract by 10 percent this year.
It said it met both its targets in 2009: achieving positive cash flow ? the funds a company is able to generate after maintaining or expanding assets ? at 2.09 billion euros and increasing market share, although by a modest 0.1 percent.
It used the cash flow to reduce debt and vowed to achieve positive cash flow again this year.
Chief Financial Officer Thierry Moulonguet told journalists that he expects 4,000 people to leave the company through attrition this year.
In 2009, Renault cut its work force by 7,600 through a voluntary redundancy scheme and attrition. At the end of the year, the total headcount was 121,422.
In exchange for state help during the crisis, Renault promised to make no forced layoffs in France, but recent comments by Industry Minister Christian Estrosi suggested the government wants a bigger say in running the company.
Renault is seeking further cost savings through its alliance with Japanese partner Nissan Motor Co.
The full-year net loss is greater than the 2.59 billion euro forecast by analysts and compares with 2008's 571 million euro net profit. Revenue fell 10.8 percent to 33.71 billion euros in 2009.
In the second half, Renault lost 356 million euros after government scrappage schemes delayed the crisis.
"We are continuing our work on building the Renault of the post-crisis period with the pursuit of the sales offensive in Europe," said CEO Carlos Ghosn.
"Economic conditions will remain difficult in 2010."
Renault said the European car market could contract by 10 percent this year.
It said it met both its targets in 2009: achieving positive cash flow ? the funds a company is able to generate after maintaining or expanding assets ? at 2.09 billion euros and increasing market share, although by a modest 0.1 percent.
It used the cash flow to reduce debt and vowed to achieve positive cash flow again this year.
Chief Financial Officer Thierry Moulonguet told journalists that he expects 4,000 people to leave the company through attrition this year.
In 2009, Renault cut its work force by 7,600 through a voluntary redundancy scheme and attrition. At the end of the year, the total headcount was 121,422.
In exchange for state help during the crisis, Renault promised to make no forced layoffs in France, but recent comments by Industry Minister Christian Estrosi suggested the government wants a bigger say in running the company.
Renault is seeking further cost savings through its alliance with Japanese partner Nissan Motor Co.
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