RENAULT poorly rewarded for its strong results – Le Figaro

(AOF) – Renault (-2.98% to 66.78 euros) a sign of the largest declines the CAC 40 goals in 2016 because considered too ambitious. This year, the automaker aims to increase its turnover in constant currency and an improvement in its operating margin. He expects to achieve these goals on a global auto market growth of 1 to 2%. The European market, as the French market is expected to rise 2%. But Morgan Stanley fears for his part that these two areas, where Renault has achieved 57% of its sales in 2015 will experience a slowdown.

The broker maintained its recommendation Underweight on the title.

investors also reacted badly to a statement by Carlos Ghosn, CEO of Renault, suggesting that there would probably not building project of the Renault-Nissan Alliance. The Future of the Alliance has many busy markets and Renault in 2015, operators hope that the French manufacturer can enjoy even more of the good practices in the Japanese manufacturer.

Just about nine first months of the year, it has recorded a net profit of 3.4 billion euros and a turnover of 66.5 billion, well above the performance of the french group. In addition, in late January, Carlos Ghosn said target at least 4.3 billion euros of cost savings this year in the Alliance. Operators would probably go further in the integration of both companies.

These two factors overshadowed the announcement of a dividend increase of 26% to 2.40 euros a jump of nearly 50% of net profit to 2.82 billion euros.
Renault’s sales benefited from a positive contribution of Nissan 1.976 billion euros, up 26%. This contribution from the Japanese partner has offset the depreciation of Renault’s investment in the Russian AvtoVAZ, whose value went from 225 to 91 million euros. In total, the negative contribution of the manufacturer of the Lada, impacted by the deteriorating economic conditions in Russia amounted to 620 million euros for the French group.

The jump in net income of Renault is also due to its operational performance, better than expected. Thus, the operating margin jumped from 44.2% to 2.320 billion euros, while analysts had forecast 2.218 billion. It represented 5.1% of revenues in 2015, allowing Renault to achieve its objective of an operating margin of 5% two years ahead.
On the only automotive segment, the margin operational jumped over 74% to 638 million euros (3.5% of revenues), benefiting from cost reductions and higher sales volumes.
Finally, the number of Renault annual sales increased by 10.4% (+ 10.6% at constant exchange rates) to 45.327 billion euros. The consensus was 45.156 billion

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