French carmaker Renault has announced its net profit fell 78% in 2008 to 599 million euros (774 million dollars), as the company was hit hard by a drop in demand for new cars.
AFP - French carmaker Renault on Thursday announced a 78 percent drop in net profits for 2008 to 599 million euros (774 million dollars) as demand for new cars dried up.
Renault said it had made a full-year operating loss of 117 million euros, compared with a profit of 1.24 billion euros a year before.
The group said its priority for 2009 was to produce positive cash flow by reducing costly inventories, pulling back on investment and continuing to force down fixed costs.
It gave no financial forecasts for the year.
Full-year revenue fell 7.0 percent in 2008 to 37.79 billion euros after plunging 29 percent in the last quarter alone as sales dried up.
Net debt of the automobile division surged by 5.2 billion euros over the 12 months through December to 7.94 billion euros.
Date created : 2009-02-12