Renault: shares fall after Nissan profit warning

(CercleFinance.com) - Renault shares were the biggest losers on the CAC 40 index on Friday morning in Paris, after the profit warning issued by its Japanese partner Nissan.


Shortly before 11am, Renault shares were down around 3.8%, while the CAC was just 0.8% under at the same time.

As a result of lower-than-expected sales, notably due to inflation, Nissan has announced that it has revised downwards its financial targets for the 2023/2024 financial year, which ended on 31 March.

The carmaker, which had already lowered its sales forecasts last February against a backdrop of intensifying competition, says it now expects only 3.44 million deliveries for the financial year, compared with the 3.55 million units previously envisaged.

Nissan's operating profit forecast has been cut from 620bn yen to 530bn yen, while the net profit target has been revised from 390bn yen to 370bn yen.

As Nissan's warning came after the Tokyo Stock Exchange closed, investors were unable to punish the Japanese automaker's stock immediately, and instead turned against its French partner.

Following the reshaping of their alliance, Renault recently sold several blocks of Nissan shares, but the group still held a 38.9% stake at end-March.

The French group plans to eventually hold only a 15% stake in Nissan, down from over 43% last year.


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