Latest news with #DuncanMinto
Yahoo
9 hours ago
- Automotive
- Yahoo
Renault shares crash 17% after the automaker's profit warning
Renault shares plummeted 17% after cutting its annual guidance. The morning slump was the steepest one-day drop since the start of the pandemic. The company appointed Duncan Minto as interim CEO after Luca de Meo's departure. Renault shares crashed as much as 17% after the French automaker cut its guidance for the year. Late Tuesday, the company lowered its operating margin guidance for 2025 from at least 7% to 6.5%. On Wednesday, Renault's stock on the Euronext Paris exchange was down 16.3% at 34.79 euros at 10:00 a.m. local time, marking its steepest one-day drop since the start of the COVID-19 pandemic in 2020. Renault attributed the revised forecast to "the deterioration of the automotive market trends with an increasing commercial pressure" from competitors and a slowdown in the retail segment. The company is also aiming for a free cash flow between 1 billion to 1.5 billion euros, down from at least 2 billion euros previously. Analysts at Jefferies wrote in a Tuesday note that Renault's revised guidance may imply "greater underlying deterioration," since the automaker's previous targets had already accounted for stricter emissions compliance costs. However, the European Union is easing compliance rules for carbon dioxide emissions. Renault is heavily reliant on Europe, and the company's comments "tie in with signs of weakening European demand," wrote the analysts. Renault could continue to face market pressure beyond June, wrote Rella Suskin, an analyst at Morningstar, on Wednesday. "Most of the European carmakers have released a new lineup of affordable electric vehicles, increasing competition," Suskin wrote. Although the historic French carmaker's reliance on Europe means it is largely insulated from the US tariffs on imported vehicles that have shaken many of its rivals, Renault faces growing competition in Europe from a wave of Chinese automakers. Tesla rivals BYD, Xpeng, and Chery are all expanding rapidly in Europe. Last month, BYD began selling the Dolphin Surf, the European version of its ultra-cheap Seagull electric city car, which competes with the Renault 5 and sells for 23,000 euros ($26,000) in Europe. Separately, Renault announced the appointment of Duncan Minto as interim CEO, following the resignation of Luca de Meo last month. De Meo joined luxury group Kering. Renault is expected to report half-year earnings on July 31. The company's shares are down more than 25% this year. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Euronews
15 hours ago
- Automotive
- Euronews
Renault shares plummet 17% after profit warning and weak results
The share price of Renault Group collapsed by 17% on Tuesday morning, as the French multinational carmaker revised downwards its earnings forecast for 2025. This came after the company reported a disappointing sales performance in June and said it expected further negative trends in the market in the next six months. According to the carmaker's statement, it now expects an operating margin for the 2025 fiscal year of around 6.5%, down from over 7% previously. That is linked to "the deterioration of the automotive market trends", "increasing commercial pressure and a predicted "continuation of the retail market decline". Free cash-flow is projected to come in between €1 billion and €1.5bn, down from over €2bn. Renault Group revealed that in the first half of its financial year, revenue increased by 2.5% to €27.6bn. However, its free cash flow reached only €47 million, far below financial analysts' expectations.** Renault Group is also strengthening its short-term cost reduction plan. This is going to focus on its selling, general, and administrative expenses (SG&A) or overhead expenses that keep the business running, but also manufacturing and R&D savings. CFO appointed interim CEO Meanwhile, the company has also yet to find a successor to CEO Luca de Meo, a month after his departure was announced. Renault Group has appointed Duncan Minto, its Chief Financial Officer, as interim CEO. 'The selection process for the new Chief Executive Officer is already well underway,' the company added in a statement. The Italian businessman Luca de Meo, who has been the CEO of Renault since 2020, officially left the automaker on Tuesday and will take over at luxury group Kering in mid-September. Until a new Renault CEO is appointed, Duncan Minto will ensure the day-to-day management of the company alongside Jean-Dominique Senard, Chairman of the board of directors of Renault Group. The carmaker will publish its half-year results on 31 July.
Time of India
16 hours ago
- Automotive
- Time of India
Renault shares tumble 17% after guidance cut, interim CEO appointment
Shares in Renault plunged as much as 17per cent on Wednesday after the French carmaker lowered its 2025 guidance due to weaker-than-expected sales volumes in June and a challenging European market. The company said late on Tuesday it now aims to achieve a full-year operating margin of 6.5per cent, below a previous target of at least 7per cent. It also warned on its free cash flow, which in the first half came to just 47 million euros ($54.49 million), hit by a negative working capital requirement of around 900 million euros due to delayed billings and a decline in the European passenger car and van market. Shares were down 15.5per cent at 0753 GMT to 34.80 euros, on track for their worst day since March 2020, after earlier falling as much as 17per cent. Renault said it would step up cost-cutting measures to improve margins in the second half but some analysts said longer-term market pressure could continue. "We foresee longer-term market pressure playing out beyond June. Most of the European carmakers released a new lineup of affordable electric vehicles, increasing competition," said analysts at Morningstar. They said this raised concerns about leadership uncertainty in a volatile market. Renault named finance chief Duncan Minto as an interim CEO on Tuesday and said the process for naming a permanent CEO was "well underway" but gave no update on timing.>
Business Insider
17 hours ago
- Automotive
- Business Insider
Renault shares crash 17% after the automaker's profit warning
Renault shares crashed as much as 17% after the French automaker cut its guidance for the year. Late Tuesday, the company lowered its operating margin guidance for 2025 from at least 7% to 6.5%. On Wednesday, Renault's stock on the Euronext Paris exchange was down 16.3% at 34.79 euros at 10:00 a.m. local time, marking its steepest one-day drop since the start of the COVID-19 pandemic in 2020. Renault attributed the revised forecast to "the deterioration of the automotive market trends with an increasing commercial pressure" from competitors and a slowdown in the retail segment. The company is also aiming for a free cash flow between 1 billion to 1.5 billion euros, down from at least 2 billion euros previously. Separately, Renault announced the appointment of Duncan Minto as interim CEO, following the resignation of Luca de Meo last month. De Meo joined luxury group Kering. Renault is expected to report half-year earnings on July 31. The company's shares are down more than 25% this year.
Business Insider
17 hours ago
- Automotive
- Business Insider
Renault shares crash 17% after automaker cuts guidance
Renault shares crashed as much as 17% after the French automaker cut its guidance for the year. Late Tuesday, the company lowered its operating margin guidance for 2025 from at least 7% to 6.5%. On Wednesday, Renault's stock on the Euronext Paris exchange was down 16.3% at 34.79 euros at 10:00 a.m. local time, marking its steepest one-day drop since the start of the COVID-19 pandemic in 2020. Renault attributed the revised forecast to "the deterioration of the automotive market trends with an increasing commercial pressure" from competitors and a slowdown in the retail segment. The company is also aiming for a free cash flow between 1 billion to 1.5 billion euros, down from at least 2 billion euros previously. Separately, Renault announced the appointment of Duncan Minto as interim CEO, following the resignation of Luca de Meo last month. De Meo joined luxury group Kering. Renault is expected to report half-year earnings on July 31. The company's shares are down more than 25% this year.
