Earthquake in the automotive sector: Renault launches a profit warning and collapses on the stock market, weighing down the entire European sector.
The French house lowered its budgetary targets for 2019 due to a "economic environment less favorable than expected and in the face of a regulatory framework that requires ever higher costs".
The new accounts provide revenues down between 3 and 4%, against the stable outlook previously communicated.
The forecast on gross operating margin of the group instead drops from 6 to 5%.
Il free cash flow of Automotive-related activities should be positive in the second half but the same result is not guaranteed for the full year. Previous guidance was for positive free cash flow for the full year 2019.
The press release also indicates that the new management team is re-evaluating the targets of the Drive the Future medium-term plan.
In the third quarter, group revenues amounted to 11,3 billion euros, down 1,6% from 11,5 billion a year ago. Automotive revenue excluding Avtovaz totaled $9,7 billion, down 3,9% year over year.
Credit Suisse analysts point out that Renault's exposure in Turkey e Argentina is making itself felt. Furthermore, the sales of the Clio they are not making the expected contribution. The same investment house is convinced that the pressure on profitability will also be felt in the first part of 2020 and that a reduction in the shares of the Dacia brand, thanks to the higher CO2 emissions, should weigh on the profitability of the group
After the communication of the new numbers, the Renault title it came to lose 14% on the Paris Stock Exchange. The performance brings prices back to their lowest levels for 6 and a half years (April 2013) in the 47 euro area.
The announcement of a slowdown in orders by Volvo, which loses 4% on the Stockholm Stock Exchange.
The index Stoxx600 of car stocks is the worst and falls by 1,6%: in Milan sales are particularly striking fca (-1,5%) And Pirelli (-1,9%). Down too Sogefi (-1%). in Frankfurt Continental -1,6% Daimler -1,3% and bmw -0,9%.
