Share prices of French automaker Renault SA fall 16.8%, the maximum since 2020, during trading in Paris on Wednesday after the company worsened its profitability forecast for 2025.
On Tuesday evening, the company released preliminary data for the first half of the year. Renault said its revenue in the January-June period rose 2.5 per cent to 27.6 billion euros, according to a statement. At the same time, operating margin fell to 6% from 8.1% a year earlier.
The press release noted increased competition and a general deterioration in automotive market conditions.
The company has adjusted its forecast for 2025 and now expects its operating margin to be around 6.5% (previously forecast to be over 7%) and free cash flow to be €1-1.5bn (previously €2bn or more).