Renault’s revenue, net profit down in 2018

FILE: Frankfurt, Germany. 12th Sep, 2017. Thierry Bollore, Executive Vice President Renault, Renault press conference at the 65th IAA International Motor Show in Frankfurt/Main (Photo: Markus Wissmann / Shutterstock.com)

PARIS — French carmaker Renault said Thursday its revenues were down 2.3 per cent to 57.4 billion euros ($64.9 billion) last year, announcing its financial results in the wake of former chairman Carlos Ghosn’s downfall.

Renault said its net profit was down too, to 3.45 billion euros, compared to 5.3 billion euros the previous year.

Renault justified the loss in net income by “a decline from Nissan’s contribution.” Renault has a 43.4-per cent stake in the Japanese firm.

Renault chief executive Thierry Bollore, however, lauded a “strong performance, despite the business environment deterioration.”

The French car maker said the downturn in sales to partners was mainly because of a withdrawal from the Iranian market and to the decline in diesel sales.

The company noted that the loss in revenue was because of differences in exchange rates.

Ghosn, the face and driving force for the alliance among Renault, Nissan and Mitsubishi, has been detained in Tokyo since November. He has been charged with falsifying financial reports in under-reporting compensation and breach of trust in having Nissan Motor Co. shoulder investment losses and paying a Saudi businessman.

His arrest has rocked the alliance, which is reshaping its management. Renault’s new chairman, Jean-Dominique Senard, is set to meet with Nissan CEO Hiroto Saikawa during a trip to Japan this week to discuss the future of their partnership.

Renault said earlier this week it won’t pay Ghosn millions of euros in compensation. Renault also cancelled shares granted to Ghosn from 2015 to 2018, which were subject to his continued presence at Renault.

The board noted “that such condition is not met, thereby triggering the loss of Mr. Ghosn’s rights to the definitive acquisition of such shares.”

A spokeswoman from Renault said around 450,000 shares will be cancelled. At the current share price of around 57 euros ($64), that is worth almost 26 million euros ($30 million).

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This story has been corrected to show that revenue and net profit figures are in billions, not millions.