Renault Shares Fall After Cut to Outlook
18 Ottobre 2019 - 10:42AM
Dow Jones News
By Carlo Martuscelli
Shares of Renault S.A. (RNO.FR) slumped Friday following a cut
to its revenue forecast.
The French car maker said late Thursday that it expected revenue
to fall by between 3% and 4% in 2019. This comes after a previous
cut to revenue forecasts in July.
Renault also lowered its outlook for its operating margin to
around 5%, compared with a previous forecast of around 6%.
Renault shares at 0804 GMT fell 7.05 euros ($7.83), or 13%, to
EUR47.81.
Acting Chief Executive Clotilde Delbos attributed the weakened
expectations to soft trading in July and August, which wasn't
compensated for in September.
Furthermore, research expenses haven't come down as quickly as
the company had expected, pressuring its operating margin, Ms.
Delbos said.
Analysts at U.S. bank Jefferies said that while the guidance
downgrades won't come as a surprise, their magnitude does.
Meanwhile Deutsche Bank downgraded the company to a hold rating
from buy and said that there is the risk that the situation doesn't
improve next year.
Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com;
@carlomartu
(END) Dow Jones Newswires
October 18, 2019 04:27 ET (08:27 GMT)
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