Renault SA RNO, +5.90% posted a loss in the first half amid its withdrawal from Russia and the semiconductor shortage, but raised its targets for the full year.
The French auto maker said Friday that net loss for the period came in at 1.36 billion euros ($1.39 billion), compared with a profit of EUR354 million a year earlier. It unloaded its Russian business, valued at EUR2.2 billion, amid the country’s invasion of Ukraine.
Six-month revenue stood at EUR21.12 billion, down from EUR23.36 billion a year earlier.
Earlier this month, the car maker reported that worldwide vehicle sales declined by nearly 30% for the period following its withdrawal from the Russian market and it said Friday that the impact of the semiconductor shortage this year would be around 300,000 vehicles.
“Despite all the headwinds related to the stop of the activity in Russia, the semiconductor crisis and cost inflation, the group continues to improve its operating performance and is beginning to benefit from the success of new launches,” Chief Executive Luca de Meo said.
Therefore, Renault raised its group targets for 2022. It expects an operating margin of more than 5%, up from a previous forecast of around 3%, and automotive operational free cashflow of more than EUR1.5 billion, compared with a prior “positive” cashflow target.
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