Renault’s record profit may help CEO resist pressure from government
Boulogne-Billancourt — French car maker Renault posted record sales and profit for 2017, bolstering CEO Carlos Ghosn’s position in the face of government demands for a clearer succession plan and deeper integration with alliance partner Nissan. Renault said on Friday its operating profit surged 17.4% to a record high of €3.854bn, or 6.6% of revenue — which rose 14.7% to €58.77bn on buoyant European demand. The record earnings and margin beat analysts’ expectations of €3.65bn in operating profit, based on the median of 14 estimates in an Inquiry Financial poll for Reuters. Revenue came in below their €59.25bn consensus. Operating profit at the core automotive division, excluding the recently consolidated AvtoVAZ business in Russia, rose 15.2% to €363m, Renault said. Manufacturing cost savings increased to €663m from €184m. Renault pledged to maintain its group operating margin above 6% in 2018 despite worsening currency effects that reduced its full-year profit by €300m. The strong f...
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