Renault Cuts 2019 Guidance on Unfavorable Economic Environment -- Update

(Adds background on CEO removal, last year's revenue numbers, details on mid-term target review)

 
   By Kim Richters 
 

Renault SA (RNO.FR) on Thursday cut its revenue and operating margin guidance for the year, citing an unfavorable economic environment and "a regulatory context requiring ever-increasing costs".

The car maker said group revenue is expected to decline between 3% and 4%, compared with previous expectations of revenue close to last year's 57.42 billion euros ($63.44 billion). Renault previously cut its revenue forecast for the year in July.

Renault also cut its outlook for its operating margin to around 5%, compared with a previous forecast of around 6%.

The company's automotive operating free cash flow is forecast to be positive in the second half of the year, while that isn't guaranteed for the full year, the company said.

In addition to the outlook cuts, the company's new management team will also review the company's mid-term targets from its 'Drive the Future' plan that it introduced in 2017.

Additionally, Renault reported preliminary figures for the third quarter, with revenue of EUR11.3 billion, down from EUR11.5 billion the same period the year before.

The company's board of directors decided last week to remove Thierry Bollore as chief executive officer, replacing him with Clotilde Delbos on an interim basis.

Write to Kim Richters at [e-mail]

(END) Dow Jones Newswires

October 17, 2019 13:13 ET (17:13 GMT)

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