French auto maker Renault SA (RENA) on Friday revised up its full-year margin forecast, as the company’s turnaround plan, focused on profitability over sales volumes, has begun to deliver results.
Renault’s operating margins in the first six months of 2022 stood at 4.7%, compared with 2.1% in the same period of 2021.
The company now sees full-year margins at over 5%, as it is three years ahead of schedule in achieving the turnaround plan’s objectives despite challenges within the automotive industry, according to Renault’s Chief Executive Officer Luca de Meo.
The CEO said the auto maker was moving from the emergency phase of the plan towards a rebuilding phase.
“After two years of sacrifices and a hard diet, we are now ready for the next chapter at Renault,” de Meo said during an analysts call, cited by Reuters.
Still, the closure of Renault’s Russian businesses led to a net loss of EUR 1.357 billion ($1.39 billion) during the first six months of 2022.
As of 9:48 GMT on Friday the shares of Renault SA were gaining 3.77% (EUR 1.03) on the day to trade at EUR 28.38 on the Paris Stock Exchange, while extending gains from the previous two trading sessions.