Renault reports billions of euros net loss

• Source: xinhua
• [14:50 July 31 2009]
• Comments

The second largest French carmaker Renault SA Thursday reported a net loss of 2.71 billion euros (about $3.8 billion) for the first-half of 2009, as the global economic crisis melted automobile markets.

In a statement, Renault said its revenues stood at 15.99 million euros in the first half of the year, dropped 23.7 percent compared with a year earlier.

"We anticipated the crisis from July 2008 and made the first decision necessary to weather it. Today, Renault is showing resilience, as illustrated by our significant positive free cash flow," said Carlos Ghosn, Chairman and CEO of Renault.

Renault's automobile section made positive free cash flow of 848 million euros.

Renault revised upwards its forecast for 2009 world market to 57 million vehicles, a decrease of 12 percent from 2008, compared with its previous forecast of a fall of 15 percent.

Referring to European market, the company expected to see an improvement in the second half of the year at a decline of 8 percent for the full year, compared with a 13.7 percent fall in the first six months.

Renault confirmed the 2009 objectives of a positive free cash flow and an increase in market share, saying "These objectives will be achieved by pursuing the action plans on further inventory reduction, managing receivables, limiting investments, reducing costs and by improving operational performance."