Renault Posted Net Income of €97 Million for First Half of Year

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has announced major losses for the first half of 2013. Revenue and income are both down, but the company still managed to post a slight profit overall. Total cars sold were also down.

“In a difficult environment, the success of new models, cost controls and the commitment of all the teams enabled the Renault group to post a positive operating margin for the Automotive in the first half year. We are on track to achieve the objectives we announced for 2013," said CEO Carlos Ghosn.

Renault had total revenue of €20.441 billion for the first half of 2013, down 0.9%. Its real problem came from pulling out of selling cars in Iran. Its operating income was a loss of €832 million because of it. Taking that aside, Renault still had an operating income loss of €249 million, compared to positive operating income of €545 million in the first half of 2012.

Net income was €97 million for the first half fo the year, compared to €774 million in the first half of 2012, an 87% reduction.

In the first half fo the year, Renault sold 1.3 million cars worldwide, down 1.9% from a year ago. Most of these losses came from Europe, and Renault said that the market was worse than expected.

Renault is still predicting that its total auto sales will be up at the end of the year and that it will have a profit, however small, at the end of the year.