Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Tokyo Stock Exchange  >  Nissan Motor Co., Ltd.    7201   JP3672400003


News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Renault plans $2.2 billion 'no taboos' cost cuts after first loss in a decade

share with twitter share with LinkedIn share with facebook
share via e-mail
02/14/2020 | 07:05am EDT
French carmaker Renault's 2019 annual results presentation in Boulogne-Billancourt

Renault's first loss in a decade triggered a no-taboos commitment to cut costs by 2 billion euros (1.66 billion pounds) over the next three years from the carmaker on Friday, as it tries to put the Carlos Ghosn affair behind it.

As ex-Volkswagen brand manager Luca de Meo prepares to take over as chief executive of the French automaker, which has been rocked by the Ghosn scandal, it did not exclude job cuts in a promised review of its performance across all factories.

Like many auto industry rivals, including its alliance partner Nissan, Renault is grappling with tumbling demand in key markets like China, and said it expects the sector to be hit further this year, including in Europe.

In a reflection of this sobering assessment of the market outlook, Renault set a lower operating margin target of between 3% and 4% for 2020, down from 4.8% in 2019, and cut its proposed dividend against 2019 by almost 70% from a year earlier.

While Renault faces high investment costs to produce cleaner car models and supply chain problems due to China's coronavirus outbreak, a major challenge remains moving on from the scandal involving former boss-turned fugitive Ghosn, which strained its relations with Nissan and paralysed joint projects.

"It has been a tough year for Groupe Renault and the alliance," acting Chief Executive Clotilde Delbos said on a conference call, adding that the broader autos downturn had hit the company "right when we were facing internal difficulties."

Renault could not afford to wait for De Meo's arrival in July to attack costs, Delbos said, adding that nothing would be "taboo" as it reviews its business.

Meatier goals would be made public in May, she said, alongside joint plans with Nissan, as executives repeated assurances that the alliance was on track.

Delbos also stressed that Renault's automotive operational free cash flow, under scrutiny from analysts, would be positive in 2020 after stripping out restructuring costs.

"We're very confident that there is no topic on cash availability within the group," Delbos said.

Renault shares recovered from falls in early trading, and were up 1.8% at 1200 GMT despite it posting a loss of 141 million euros ($153 million) for the group share of net income.

This followed charges linked to some of its Chinese joint ventures, where it said performance needed to improve, while the contribution from Nissan, in which Renault has a 43% stake, also fell and it was hit by a French deferred tax charge.

Nissan this week had its first quarterly loss in nearly ten years and cut its operating profit forecast.


Ghosn, who ran Renault and oversaw its alliance with Nissan, was arrested in Japan in late 2018 on financial misconduct charges, but fled to Lebanon in December.

He has denied wrongdoing and hit out at his past employers, saying the Renault-Nissan alliance was all but dead without him.

De Meo, who used to run Seat, is taking over from Delbos, who is also Renault's financial chief and who stepped temporarily into the CEO role after Thierry Bollore, a long-standing Ghosn ally, was ousted in October.

Renault forecast that the global auto market would fall in 2020, with sales in Europe and Russia down around 3%, after it was penalised by its performance in the likes of Argentina and Turkey in 2019 and its withdrawal from Iran continued to weigh.

The group has a factory in Wuhan, the epicentre of the coronavirus epidemic, which has been in lockdown, and the firm said other plants might come on and off in the coming weeks due to supply chain interruptions.

Renault's group sales fell 3.3% to 55.53 billion euros in 2019, down 2.7% at constant exchange rates, and it forecast these would be flat in 2020.

(Reporting by Gilles Guillaume and Sarah White; Editing by Tom Hogue, Shri Navaratnam and Alexander Smith)

By Gilles Guillaume and Sarah White

Stocks mentioned in the article
ChangeLast1st jan.
BOLLORÉ 11.11% 2.54 Real-time Quote.-41.23%
EURO / ARGENTINE PESO (EUR/ARS) -0.13% 69.9266 Delayed Quote.4.56%
FIAT CHRYSLER AUTOMOBILES 6.71% 6.616 Delayed Quote.-53.01%
NISSAN MOTOR CO., LTD. -2.44% 315.5 End-of-day quote.-1.47%
RENAULT 14.17% 18.052 Real-time Quote.-62.51%
US DOLLAR / ARGENTINE PESO (USD/ARS) -0.01% 64.789 Delayed Quote.8.42%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) -1.35% 76.0024 Delayed Quote.23.59%
US DOLLAR / TURKISH LIRA (USD/TRY) 0.75% 6.7859 Delayed Quote.13.24%
VOLKSWAGEN AG 14.20% 112.96 Delayed Quote.-43.88%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on NISSAN MOTOR CO., LTD.
04:48pHonda, Fiat Chrysler aim to restart U.S., Canada auto production in May
04:46pHonda, Fiat Chrysler aim to restart U.S., Canada auto production in May
02:48aNISSAN MOTOR : Renault Alliance Stalls on Road to Comeback
04/03UK CAR SECTOR WARNS : supply companies need cash immediately
04/03GLOBAL MARKETS LIVE: Tesla meets expectations
04/03NISSAN MOTOR : Vietnam to close plant due to coronavirus containment measures
04/02NISSAN MOTOR : Output at Nissan's UK car plant suspended throughout April over c..
04/02NISSAN MOTOR : Group reports first-quarter 2020 U.S. sales
04/02GLOBAL MARKETS LIVE: Redundancy plan at Boeing, Amazon wins lawsuit in Europe..
04/02NISSAN MOTOR : recalls over 250K vehicles to replace Takata air bags
More news
Financials (JPY)
Sales 2020 10 275 B
EBIT 2020 96 699 M
Net income 2020 83 566 M
Debt 2020 6 595 B
Yield 2020 3,17%
P/E ratio 2020 14,5x
P/E ratio 2021 9,32x
EV / Sales2020 0,76x
EV / Sales2021 0,78x
Capitalization 1 235 B
Duration : Period :
Nissan Motor Co., Ltd. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends NISSAN MOTOR CO., LTD.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 20
Average target price 584,72  JPY
Last Close Price 315,50  JPY
Spread / Highest target 369%
Spread / Average Target 85,3%
Spread / Lowest Target -4,91%
EPS Revisions
Makoto Uchida Executive President & Chief Executive Officer
Yasushi Kimura Chairman
Ashwani Gupta COO & Representative Executive Officer
Stephen Ma Chief Financial Officer & Executive Officer
Anthony Thomas Chief Information Officer
Sector and Competitors
1st jan.Capitalization (M$)
NISSAN MOTOR CO., LTD.-1.47%12 968
VOLKSWAGEN AG-43.88%63 577
HONDA MOTOR CO., LTD.-3.78%39 007
BMW AG-38.82%33 622
DAIMLER AG-50.33%32 354