Renault SA’s third-quarter revenue advanced on strong demand for new electric models such as the Megane E-Tech, even as ongoing supply-chain constraints weighed on production.
(Bloomberg) — Renault SA’s third-quarter revenue advanced on strong demand for new electric models such as the Megane E-Tech, even as ongoing supply-chain constraints weighed on production.
Group revenue climbed 21% to €9.8 billion ($9.6 billion) in the period, in line with analysts’ estimates, the French company said Friday. Renault reaffirmed its guidance for 2022.
Commercial sales, however, were hampered by a persistent shortage of semiconductors, declining 2.4% from the same period last year, the carmaker said. Automotive revenue rose to €9 billion.
The third-quarter growth “continues to reflect our commercial policy focused on value,” Chief Financial Officer Thierry Pieton said in the statement, adding that the carmaker has improved pricing and is focusing on its most profitable channels.
Renault raised its full-year outlook in July as it sought to move past a costly withdrawal from Russia that led to a first-half loss. Chief Executive Officer Luca de Meo and his team are now working to carve out the company’s electric-vehicle and combustion engine businesses, a plan they will give more details on next month. Renault also is in ongoing talks with with Japanese partner Nissan Motor Co. to reshape their two-decade old alliance, with the two companies closing in on an agreement, Bloomberg reported earlier this week.
Under the possible deal with Nissan, Renault would reduce its stake over time to 15% from the current 43%, people familiar with the situation have said. In return, Nissan is planning to invest $500 million to $750 million for about 15% of Renault’s EV business Ampere, which is being split from the combustion-engine and powertrain operations as part of de Meo’s strategy.
The company is due to hold a capital markets day Nov. 8 to give an update on its mid-term financial targets and more details on the carve-out plans.
(Updates with CFO comment in fourth paragraph.)
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