Renault Shares Tumble as Company Sees Price Pressures Rising
- Operating profit at record in first-half but still disappoints
- Margins at automotive division come in lower than at PSA
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Renault SA shares posted the biggest decline in a year after first-half profit fell short of estimates and the carmaker said price pressures are rising in some markets.
The stock fell as much as 7.2 percent, the most since June 2016, after the French automaker warned that it was struggling to get consumers to pay for all the costs of new technology and failed to keep pace with Paris-based rival PSA Group. While Renault’s operating margin increased to 6.2 percent of sales from 6.1 percent, profitability at the maker of Peugeot and Citroen cars jumped to a record of 7.3 percent from 6.8 percent.