Nessuna aveva scritto dei conti 2009 di Renault.
- FEBRUARY 11, 2010, 7:10 A.M. ET
2nd UPDATE: Renault Posts Big Loss, Warns Tough Year Ahead
(Adds details, comments)
By David Pearson
Of DOW JONES NEWSWIRES
PARIS (Dow Jones)--French car maker Renault SA (RNO.FR) Thursday warned that its business will remain difficult this year due to an expected decline in the European auto market, after it posted a massive loss for 2009 as its own sales sagged and it booked losses from its partners Nissan Motor Co (7201.TO) and Volvo AB (VOLV-B.SK).
The company has forecast a 10% decline in the European auto market this year, and didn't give any earnings guidance beyond stating that its objectives are to generate positive free cash flow and thus continue reducing debt.
Renault posted a net loss of EUR3.07 billion, or EUR12.13 a share, for 2009--its first annual loss since 1996--compared to a net profit of EUR599 million, or EUR2.23 a share, in 2008. The net loss for the second half of the year was EUR356 million. Half of last year's red ink, or EUR1.56 billion, came from Renault's 44% equity interest in Nissan and its 21% stake in Swedish truck maker Volvo.
Revenue fell 11% on year to EUR33.71 billion, on the back of a previously reported 3.1% decline in Renault's global sales of cars and vans to 2.31 million vehicles. Renault incurred an operating loss of EUR396 million for all of last year, but improving market conditions allowed it to achieve an operating profit of EUR224 million in the second half of the year.
The European car market suffered a severe downturn in the first half of 2009 as sales sagged due to the economic downturn, but the market picked up in the second half as government incentive schemes designed to prop up the industry caused a pickup in sales. However, a further decline in sales is expected this year as those incentive schemes end or are wound down.
Renault said it recorded a 25% revenue increase year-on-year in the last quarter of 2009.
Renault Chief financial officer Thierry Moulonguet told a group of journalists that Nissan made a positive equity contribution of EUR309 million to Renault in the second half of 2009. Earlier this week, Nissan reported it had returned to quarterly profit in the three months ended Dec. 31 and raised its earnings guidance amid signs that the automobile industry is emerging from its slump.
Renault generated EUR2.09 billion of free cash in 2009 allowing it to reduce net debt by EUR2.02 billion to EUR5.92 billion.
Analysts applauded Renault's surprisingly strong free cash flow in 2009 and the debt reduction that also exceeded market expectations, though they said operating earnings were disappointing.
Chief Executive Carlos Ghosn said getting net debt below EUR3 billion is a major priority for Renault going forward as a means to improve its credit rating and thus lower borrowing costs.
He said Renault and Nissan expect to extract another EUR1 billion from synergies this year after EUR1.5 billion in 2010.
Cash flow generation will be helped by further cost reductions, and the company's worldwide headcount will be reduced through attrition. At the same time, the company is keeping a lid on investment.
"2010 will be similar 2009, so there's no need to shift our priorities," Ghosn said.
He acknowledged that the company would have to sell assets to reduce its debt burden, but declined to say whether Renault is considering divesting its stake in Volvo and said it wouldn't be a good time to do such a deal because asset values are depressed.
"Selling assets is an obligation for those who are in a very difficult financial situation. That's not our case," he said.
Ghosn, who is also CEO of Nissan, said Renault is preparing a new medium-term strategy plan, but it won't be unveiled until next year, by which time the company hopes to have better visibility where it and the industry is headed.
He predicted that 2010 will be another "very tough" year in terms of predatory pricing by car manufacturers struggling to maintain or increase their market shares, and this will oblige Renault to step up its cost reduction efforts.
Renault's global market share rose 0.1 percentage point in 2009 to 3.7% in a market that shrunk by 4.5%, and the company is targeting a further gain in market share in 2010 with the launch of six new models.
Ghosn downplayed reports that Renault and Nissan could seek a wider partnership with other car makers, including Germany's Daimler AG (DAI.XE). He reiterated that the alliance is talking to many peers about various project ideas, but wouldn't elaborate.
He said any eventual alliances would be "strategic" rather than "tactical" and would aim to bolster the longer-term interests of the 10-year-old Renault-Nissan alliance through common development of technology and drivetrains.
