Renault says profits plunge on Iranian charge
French auto group Renault reported a profit plunge on Friday owing to charges for halting its activities in Iran and for restructuring in France.business Updated: Jul 26, 2013 14:04 IST
French auto group Renault reported a profit plunge on Friday owing to charges for halting its activities in Iran and for restructuring in France.
The group reported a net profit for the first six months of the year of 39 million euros ($52 million) compared with 746 million euros at the same time in 2012.
The exceptional charges helped to push the operating result to a loss of 249 million euros from a profit of 519 million euros last time.
Sales fell by 2.4% to 20.4 billion euros, the group said in a statement, but it stood by its outlook for the full year despite what it termed a "tougher environment than expected."
The company took a charge this year of 512 million euros for its activities in Iran which have been hit by a hardening since July 1 of international sanctions which now include the auto sector.
Finance director Dominique Thormann told a press conference that "there is an effective halt to activity" in this country.
Renault is the second-biggest French auto group after struggling PSA Peugeot Citroen which early last year interrupted its activities in Iran.
First Published: Jul 26, 2013 14:03 IST