France’s second largest automaker, Renault SA, announced third-quarter revenue that missed most analyst predictions. The currency swings in South America and Russia managed to offset global sales increases and higher pricing in Europe.
Sales went down 3.2 % to 8 billion euros ($11 billion) from a restated 8.26 billion euros a year earlier, the Boulogne-Billancourt, France-based company said yesterday in a statement. Revenue was below the 8.5 billion-euro average of six analyst estimates compiled by Bloomberg. Nine-month revenue also dropped 1.5 % to 28.4 billion euros.
“It’s mainly due to the currency effect, which is explained by the fact that Renault’s second- and third-biggest markets are Russia and Brazil,” said Florent Couvreur, a Paris-based analyst at CM-CIC.
The company “remains on track to meet its objectives for the year,” including “higher group registrations worldwide, positive automotive operating margin and positive operational free-cash flow,” said Renault’s statement.
Renault’s nine-month Russian car and light-truck sales went up 12 %, defying a local auto market drop of 7 %. At the same time, the ruble fell 8.5 % against the euro in the 12 months through September. The Argentinian peso declined 23 %, and the Brazilian real dropped 14 %. Renault reiterated full-year goals for its car unit to grow sales and earnings after worldwide third-quarter deliveries increased.