PARIS: French automaker Renault said Thursday that its profits were halved in the first half of this year, swerved off course by the current crisis at its Japanese partner, Nissan.
Renault said in a statement that its net profit nosedived to 970 million euros ($1.1 billion) in the period from January to June from 1.952 billion euros a year earlier.
Earnings were “heavily penalized by the decline of Nissan’s contribution,” the French group said.
Renault owns a 43-percent stake in the embattled Japanese group which this week announced 12,500 job cuts and a dramatic drop in quarterly profits as it struggles with weak sales and the arrest of its former chief.
Normally, Nissan accounts for a large chunk of Renault’s bottom line. Last year it contributed 805 million euros to the French carmaker’s profits.
But Nissan has been buffeted by its poor performance in the United States and Europe as well as the scandal of financial misconduct charges against former boss Carlos Ghosn.
Renault said group revenues also declined in the first half, falling 6.4 percent to 28.05 billion euros.
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