Renault maintains margin guidance, plans price increases

LONDON (MarketWatch) -- French car maker Renault said Thursday that its first half net profit rose to 1.47 billion euros ($2.3 billion) from 1.07 billion euros as it also maintained its margin target and announced plans to raise prices and halt new hiring. The group said its operating margin in the period rose to 4.1% of sales from 3.5% a year earlier and added it's on track to achieve its targeted margin of 4.5% for the year. To combat the weakening economy and rising raw materials prices, Renault will raise its sales prices, postpone projects deemed less important and put a freeze on hiring in Europe. It's also considering a 10% reduction in corporate overheads through a voluntary redundancy plan and may reorganize production sites. Sales for the period rose 2.3% to 20.94... [read full story]