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Renault Profits Slump As Competition Intensifies
Renault Profits Slump As Competition Intensifies

Int'l Business Times

time34 minutes ago

  • Automotive
  • Int'l Business Times

Renault Profits Slump As Competition Intensifies

French automaker Renault said Thursday that the tough retail and commercial van market in Europe had squeezed profits although it was able to maintain profitability better than most rivals. Excluding exceptional items Renault saw its first half net profit slump 69 percent to 461 million euros ($528 million). However it suffered 11.6 billion euros in exceptional losses due its partner Nissan, including the 9.3 billion it announced at the beginning of the month due to switching the accounting treatment of its Nissan stake so it will no longer impact its operating results. Renault rescued Nissan in 1999 and the two automakers have held stakes in one another since, in a rocky partnership that never saw them merge. Heavily indebted Nissan has hit another rough patch, posting a net loss of $4.5 billion for the financial year to March 2025 and announcing plans to cut 15 percent of its workforce. Renault has fared well in recent years thanks brining a number of new models to market under its own brand as well as that of its low-cost unit Dacia, as well as by tapping into a consumer shift to hybrid models. However Renault's heavy reliance on Europe, where the market has never fully recovered from pandemic-era drop in sales and contracted by 1.9 percent in the first half of the year, means it faces a difficult road ahead. Moreover it lost in in June the dynamic Luca de Meo as chief executive to Kering, a French luxury conglomerate that includes Gucci. He was replaced on Wednesday by Francois Provost, a long-time company veteran who has been helping execute its strategic plan. "Our first-half results, in a challenging market, were not aligned with our initial ambitions," Provost said in a statement, saying actions were already being taken to achieve the company's targets. "Nevertheless, Renault Group's profitability remains a reference in our industry, and we are determined to maintaining this standard." Renault turned in an operating margin of 6.0 percent -- down by 2.1 percentage points -- but said it hopes to raise that to 6.5 percent for the full year. Rival Stellantis -- which includes the French brands Citroen and Peugeot -- saw its margin squeezed to just 0.7 percent in the first half of this year. Volkswagen, Europe's largest carmaker saw its margin slide to 4.7 percent. Both groups are more exposed to US tariffs than Renault, which does not operate in the United States. Renault's revenue rose by 2.5 percent overall, but automotive revenue only edged 0.5 percent higher in the first half of the year. Renault's shares were down 0.4 percent in late morning trading while the CAC 40 index was 0.2 percent lower.

US Tariffs Corrode Steelmaker ArcelorMittal's Profitability
US Tariffs Corrode Steelmaker ArcelorMittal's Profitability

Int'l Business Times

time2 hours ago

  • Business
  • Int'l Business Times

US Tariffs Corrode Steelmaker ArcelorMittal's Profitability

The world's number two steelmaker, ArcelorMittal, said on Thursday its half-year net profit jumped on exceptional items but US tariffs began to eat into its margin. Net profit for the period from January through June rose 39 percent from the same period in 2024 to hit $2.6 billion, thanks to a $1.7 billion exceptional gain from acquiring a stake in a US unit ceded by Nippon Steel. But operating earnings that strip out interest costs, depreciation and taxes, slid by 10 percent to $3.4 billion, notably due to US tariffs on steel imports. US President Donald Trump doubled tariffs on steel and aluminium to 50 percent at the beginning of June, including on its neighbour Canada which is the largest foreign supplier to the United States, as well as Mexico. ArcelorMittal says its global footprint, it produces steel in 15 countries and serves customers in 129, enables it to benefit from high-growth markets such as India and Brazil. However the introduction of US steel tariffs complicates ArcelorMittal's operations in North America, where it has factories in Canada, Mexico and the United States. First half sales slid 5.5 percent to $30.7 billion, but that 7.5 percent drop in average steel prices. "The underlying strength of the business is good, but like every company we must navigate the backdrop of ongoing geopolitical and tariff disruptions," chief executive Aditya Mittal said in a statement. "Despite the many challenges facing global business today, I am confident that ArcelorMittal has a profile that will enable us to continue to grow and thrive," he added. Mittal said gaining full ownership in Calvert by acquiring the stake from Nippon Steel strengthens its capabilities to produce high-quality steel products for a range of customers including the automotive industry. He urged the European Union to detail the measures it plans to take to protect its market from a flood of cheap Chinese steel imports. "It remains a crucial year for European steelmaking, and I sincerely hope that Europe will hold good onto its commitment to defend and prioritize its domestic steel industry," said Mittal. He added that the trend in Europe to boost government spending on defence and infrastructure was positive for the steel industry. ArcelorMittal's shares slumped 3.9 percent in Paris where the CAC 40 index was up 0.4 percent.

Release of Legrand's Consolidated Financial Statements as of June 30, 2025
Release of Legrand's Consolidated Financial Statements as of June 30, 2025

Business Wire

time5 hours ago

  • Business
  • Business Wire

Release of Legrand's Consolidated Financial Statements as of June 30, 2025

LIMOGES, France--(BUSINESS WIRE)--Regulatory News: Legrand (Paris:LR) indicates that its consolidated financial statements as of June 30 th, 2025, are available as from today, at: KEY FINANCIAL DATES 2025 nine-month results : November 6, 2025 ' Quiet period 1 ' starts : October 7, 2025 2025 annual results : February 12, 2026 ' Quiet period 1 ' starts : January 13, 2026 General Meeting of Shareholders : May 27, 2026 ABOUT LEGRAND Legrand is the global specialist in electrical and digital building infrastructures. Its comprehensive offering of solutions for residential, commercial, and datacenter markets makes it a benchmark for customers worldwide. The Group harnesses technological and societal trends with lasting impacts on buildings with the purpose of improving life by transforming the spaces where people live, work and meet with electrical, digital infrastructures and connected solutions that are simple, innovative and sustainable. Drawing on an approach that involves all teams and stakeholders, Legrand is pursuing a strategy of profitable and responsible growth driven by acquisitions and innovation, with a steady flow of new offerings that include products with enhanced value in use (energy and digital transition solutions: datacenters, digital lifestyles and energy transition offerings). Legrand reported sales of €8.6 billion in 2024. The company is listed on Euronext Paris and is a component stock of the CAC 40, CAC 40 ESG and CAC Transition Climat indexes (code ISIN FR0010307819). 1 Period of time when all communication is suspended in the run-up to publication of results The reader is invited to verify authenticity of press releases by Legrand with the CertiDox app. More information on

European markets head for broadly higher open as earnings deluge continues
European markets head for broadly higher open as earnings deluge continues

CNBC

time6 hours ago

  • Business
  • CNBC

European markets head for broadly higher open as earnings deluge continues

The Millennium Bridge in London, on July 4, 2025. Jonathan Brady - Pa Images | Pa Images | Getty Images Good morning from London, and welcome to CNBC's live blog covering all the action and business news in European financial markets on Thursday. Futures data from IG suggest a broadly positive open for European indexes, with London's FTSE 100 seen opening 0.1% higher, France's CAC 40 unchanged, Germany's DAX up 0.2%, and Italy's FTSE MIB 0.3% higher. European markets closed in mixed territory Wednesday, with sectors diverging as second-quarter earnings season ramped up. There will be more earnings today, with Unilever , Shell , Anheuser-Busch Inbev, London Stock Exchange Group , BMW , Anglo American , SocGen , Renault , AF-KLM , Euronext, Sanofi, Credit Agricole and ArcelorMittal among the heavyweight regional companies that are due to report. On the data front, French, German and Italian inflation data is due, as are the latest German and EU unemployment figures. — Holly Ellyatt

Hermes confirms outlook for rising sales in 2025
Hermes confirms outlook for rising sales in 2025

Japan Today

time13 hours ago

  • Business
  • Japan Today

Hermes confirms outlook for rising sales in 2025

The group said it might be able to avoid further price hikes after the EU's tariffs deal with the US French luxury group Hermes confirmed Wednesday its outlook for full-year sales growth as it turned rising revenue for all parts of the world in the first half despite global economic uncertainty. The group, known for its silk scarves and leather handbags, also said it might be able to avoid further price hikes in the United States following the weekend deal that will see EU goods entering the US face a 15-percent baseline tariff. First-half sales rose by 7.1 percent to 8 billion euros ($9.2 billion), including double-digit growth in the United States. Excluding currency effects, which had a negative impact of 77 million euros on revenue in the first half of the year, sales would have risen by eight percent. Sales rose by three percent in the Asia region excluding Japan, the company saying sales had also risen in China, a key market for luxury firms that has been soft recently. "I don't see at the moment a fundamental change in the sales climate in China, which remains favourable for us," chief executive Axel Dumas told journalists. Net profit dipped five percent in the first half of the year to 2.2 billion due to an exceptional tax France levied on major firms, but Hermes said its recurring operating profit had climbed six percent to 3.3 billion. Dumas said he was waiting for more details about the EU-US trade deal. The company raised its prices by five percent after the United States introduced a global baseline 10 percent rate in April. But if the 15 percent rate is a 10-percentage point increase from the roughly five percent rate that was in place before Trump took office, Dumas said "there is no reason to raise prices". He also noted the effect of dollar-euro exchange rate. "We have a dollar which has fallen a lot and that has as much if not more of an impact than tariffs," said Dumas. Hermes confirmed its full-year outlook. "In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates," it said. Hermes shares slumped more than four percent in midday trading, while the Paris CAC 40 index rose 0.4 percent. © 2025 AFP

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