Shares of Renault (EPA: RNO) rose over 2% today after the French car giant reported better-than-expected third-quarter sales.
Renault posted revenue of €10.4 billion ($12.3 billion) for three months to end-September, which represents a drop of 8.2% compared to a year ago. Still, this is much better than a 35% plunge reported for the first six months of 2020, translated into a record €7 billion net loss. Cash reserves stood at €15.2 billion.
“This third quarter highlights the change in our commercial policy, which now focuses on profitability rather than volumes. Our EV performance, our E-TECH hybrid models which have been very well received, our liquidity reserves and our positive spirit give us confidence in the Group’s ability to start its recovery,” said Luca de Meo, CEO of Renault.
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Renault is currently overperforming the wide car market as its sales in Europe are down 2.9% compared to a market average of 5%. Sales rose by about 8% in September.
Moreover, the company has continued its aggressive costs-slashing plan de Meo introduced upon his arrival. The CEO wants to save over 2 billion euros.
“Our fixed cost reduction plan is well on track,” Clotilde Delbos, deputy chief executive said.
Renault also reported higher sales in its electric vehicle (EV) unit Zoe. It sold 27,000 cars in the third quarter.
Renault share price trades more than 2% higher to print a new 7-week high at €25.52.
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