Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Renault Shares Edge Lower After First Half Sales Slide

Published 07/12/2022, 03:45 AM
Updated 07/12/2022, 03:48 AM
© Reuters.

By Scott Kanowsky -- Shares in Renault SA (EPA:RENA) fell on Tuesday after the French carmaker reported a 29.7% deceleration in sales in the first half.

Group-wide global sales dropped to 1,000,199 units during the period, driven lower by the shutdown of its business in Russia - its second-largest market - following the outbreak of the war in Ukraine.

Excluding its Russia operations, which include Renault Russia and manufacturer Avtovaz, annual group sales slumped by 12%.

Renault announced in May that it would sell its stake in Avtovaz to the Russian government, as it faced pressure to shed its Russian assets in the wake of Moscow's invasion of Ukraine. No financial details were given regarding the deal, but a Russian minister said earlier this year that Renault would sell the division for the symbolic price of one rouble.

At the time, Renault chief executive Luca de Meo called the sale a "difficult but necessary decision".

Meanwhile, the company - also known for brands like Dacia and Alpine - said that first-half sales were disrupted by "the semiconductor crisis", referring to a shortage of key chip supplies facing many European auto manufacturers.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.