Renault’s revenue, net profit down in 2018

In its first results since the downfall of former chairman Carlos Ghosn, French carmaker Renault reported a 35 percent slump in profits last year and warned about the impact to business if Britain crashes out of the European Union next month without a deal.

Renault said Thursday that sales last year declined by 2.3 percent to 57.4 billion euros ($64.9 billion), which contributed to a sharp fall in net profit to 3.45 billion euros, compared to 5.3 billion euros the previous year. A lower contribution from partner Nissan also hit profits - Renault has a 43.4-percent stake in the Japanese firm.

Chief Executive Thierry Bollore said growth this year was likely to be moderate with the company targeting an operating margin of around 6 percent.

“We expect the worldwide market and, the European market to remain stable, on the condition there is no hard Brexit,” Bollore said. “But we’re making simulations, we are getting prepared.”

The French car maker said the downturn in sales was mainly due to a withdrawal from the Iranian market and to the decline in diesel sales. The company noted that the loss in revenue was because of differences in exchange rates.

Ghosn, the face and driving force for the alliance among Renault, Nissan and Mitsubishi, has been detained in Tokyo since November. He has been charged with falsifying financial reports in underreporting compensation and breach of trust in having Nissan Motor Co. shoulder investment losses and paying a Saudi businessman. (AP)