Renault cuts dividend, slices profit goal for 2020

Renault cuts dividend, slices profit goal for 2020

FILE PHOTO: A Renault Clio E-Tech Hybrid car is seen at Brussels Motor Show, Belgium, January 9, 2020. REUTERS/Francois Lenoir/File Photo

PARIS (Reuters) – French carmaker Renault (RENA.PA) warned that auto demand remained volatile, cut its dividend for 2019 and set a lower operating margin goal for 2020, a crunch year in which it wants to reboot its partnership with Japan’s Nissan (7201.T).

The company posted an annual profit loss of 141 million euros ($153 million) – its first in 10 years – for the group share of net income, penalized by charges linked to some of its Chinese joint ventures and as Nissan’s contribution shrank.

It set an operating margin target for this year of between 3% and 4%, down from 4.8% in 2019.

The company said it proposed paying a dividend of 1.10 euro per share against 2019 results, down from 3.55 euros for 2018.

Reporting by Gilles Guillaume and Sarah White; Editing by Tom Hogue

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