Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on RENAULT SA. We currently have 19 research reports from 1 professional analysts.
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Carlos Ghosn steps down as Nissan's CEO
23 Feb 17
Renault’s CEO will remain Chairman of Nissan’s Supervisory Board and CEO of both Renault and Mitsubishi, in which Nissan bought a 34% stake in 2016. Carlos Ghosn successfully restructured Nissan late in the last century, but the company has taken over a minority stake in ailing Mitsubishi and, in late 2016, Renault acquired a majority stake in loss-making Russian Avtovaz. As Ghosn’s track record has been so positive, investors believe that he can also restructure these two latest ventures so that both will eventually generate positive earnings. While the Mitsubishi numbers are consolidated at-equity by Nissan and its results at-equity by Renault, the 2016 Avtovaz balance sheet has been consolidated on 31 December 2016, but the P&L will start to burden Renault’s operating earnings from this year onwards. The Russian car producer does not expect positive operating earnings before impairments and restructuring charges before 2018.
Good results also stemming from Avtovaz and a higher dealer inventory
10 Feb 17
Renault sold a total of 3.18m vehicles (+13%) in 2016 and, as the ASP was up by 0.3% to €15,395, revenue of the Automobile division increased by 14% to €49.0bn. Consolidated revenue increased by 13% to €51.2bn and both revenue numbers were some €1.5bn below our projections. The group shows an operating result of €3.28bn (+38%) and net earnings of €3.42bn (+21%) and these numbers are €230m and €370m, respectively, higher than we had anticipated. Consequently, management proposes a dividend of €3.15 (2015: €2.40) while we had expected €2.75.
Nissan’s profit fall accelerates with yen appreciation
07 Nov 16
Car deliveries increased by a good 3% in both the last quarter and H1 (FYE 31 March) to 1.05m and 2.05m units, respectively. However, as the yen’s appreciation accelerated (its average was up by 9% from April through to May and some 15% from July through to September), Nissan’s revenue fall accelerated from -8.4% in Q1 to -12% in Q2. The same holds true for profits. EBIT was down by 9% to Y176bn in Q1 and by 19% to Y164m in Q2, i.e. expressed in euros it also fell in the last quarter. The company’s respective net earnings were -11% to Y136bn and -16% to Y146bn. As the Q2 net profit fall expressed in yen was similar to the yen’s appreciation against the euro, the at-equity contribution to Renault’s Q3 accounts should have been in the vicinity of last year’s €524m. It had been down by 23% to €749m in H1 16. Nissan’s deliveries fell by 20% to 201,942 in H1 in Japan and 0.3% to 355,466 in Europe but they were up by 8.3% to 1.06m in Nafta and 50% to 203,144 in Asia. Sharply rising volume in Asia has allowed at-equity profits (overwhelmingly from China) to increase by 32% to Y75bn. Simultaneously, exchange losses (including gains and losses from derivatives) fell from Y28bn in H1 15/16 to Y22.6bn. In spite of higher at-equity profits and lower exchange losses, net earnings were down as the operating result was lower (see comment above).
Mercedes-Benz starts pick-up production, but not for Nafta and Asia
30 Sep 16
Daimler’s CEO Dieter Zetsche stated at the Paris Motorshow that the cooperation between Daimler and Renault-Nissan has been expanded during the course of 2016. He focused on four topics: Smart cars will eventually also be available as full-electric cars using Renault’s engines and Daimler’s batteries. The Smart fortwo is to continue to be produced in Daimler’s Hambach/Alsace factory while the forfour is to be produced in Renault’s Slovenian plant along with the Renault Twingo. Daimler and Nissan have laid the foundation for a car plant in Mexico in 2015. Starting in 2017, this plant will produce premium compact cars for the Infiniti brand and from 2018 for the Mercedes-Benz brand. An all-new Mercedes-Benz pick-up will be produced in Renault’s Argentine plant and in Nissan’s Spanish plant. The car will be based on Nissan’s NP300 but, according to Daimler, will look different. It intends to sell the pick-up in all markets outside North America and Asia. We believe that this limitation is a Nissan request and wonder how many of these cars can be sold outside these two regions. A Nissan engine plant in the USA has been producing 2L, 4-cylinder gasoline engines for Daimler since 2014. This plant is currently being expanded to increase capacity. During the last two years, it has produced some 250,000 engines for Daimler and these are used in cars for the Nafta market as well as for Africa. Additionally, engine components are shipped to Germany.
19 Apr 17
Lombard Risk Management* (LRM): Beats demanding growth and profit forecasts (CORP) | Frontier Developments* (FDEV): Steaming ahead (CORP) | Tax Systems* (TAX): Right place, right time (CORP) | Acal (ACL): Stronger H2 and brighter outlook (BUY) | Fenner (FENR): Interim results signal upgrades (BUY) | Minds + Machines* (MMX): US and Europe domain sales (CORP)
Small Cap Breakfast
24 Apr 17
Global Ports Holding—Intention to float on Standard List of the Main Market. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected on AIM 3 May. RTO of Escape Hunt raising £14m at 135p. Verditek— Intention to float on AIM. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May. Eddie Stobart Logistics— Schedule 1 update. Admission expected 25 April on AIM raising £122m. ADES International Holding— Intends to join the Standard List of the Main Market in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May on specialist funds segment of Main Market to enable investors to complete further due diligence.
Mature market growth still negative, despite beat in Q1
20 Apr 17
Unilever (ULVR LN, HOLD, T/P 3800p) released their Q1 trading statement this morning – Q1 underlying sales grew 2.9%. Turnover increased 6.1% to €13.3bn, in front of Bloomberg consensus of €13.2bn. Despite trading market conditions being described as tough, Unilever grew pricing by 3.0%, but saw volume declining 0.1%.