Renault to Retrench

PARIS -- French automaker Renault SA Thursday said first-half net profit rose 37% and reaffirmed its operating-margin forecast, but said it will cut jobs and scale back production and spending to restore competitiveness. The company said net profit rose to €1.47 billion ($2.31 billion) in the first six months from €1.07 billion a year before. The net profit figures exclude the contribution from Japanese alliance partner Nissan Motor Co., in which Renault has a 44% shareholding. Nissan will give out its 2008 second-quarter results Aug. 1. Operating profit increased by 20% to €865 million in the first half from €689 million a year before, while revenue rose by 2.3% to €20.94 billion, growing more slowly than the 4.3% increase in Renault's vehicle sales. Renault reported an operating margin of 4.1% of sales for the first half of... [read full story]