Renault sees 39 pct drop in 1st-half profit

[July 27, 2012]  PARIS (AP) -- French carmaker Renault's profits plunged 39 percent in the first half of the year driven in part by expenses related to changes in the product cycle. Its revenues were largely unchanged over last year.

The company sold a record number of vehicles outside Europe from January to June, off-setting a sharp fall-off in its core market. Sales slipped 1 percent for the first half to euro20.9 billion ($25.6 billion). Net profit was euro746 million.

The company said Friday that it expects that trend to continue in the second half of the year and become even more pronounced. It now predicts the French market will contract 10 to 11 percent, and the rest of Europe will shrink 6 to 7 percent. Global demand, by contrast, should rise 5 percent.

[Associated Press]

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