Renault shares slump after carmaker issues sales warning

FILE PHOTO: The logo of French car manufacturer Renault is seen at a dealership of the company in Bordeaux, France, June 12, 2019./File Photo

PARIS (Reuters) – Renault (RENA.PA) shares slumped on Friday after the French carmaker cut its revenue guidance for 2019 and lowered its profitability forecast.

Renault shares were down 11% in early trading.

After the market closed on Thursday, Renault said sales were likely to drop between 3% and 4% this year. The company also said its operating margin was set to come in at 5%, versus a previous 6% goal.

“Overall, there are too many uncertainties today,” wrote Deutsche Bank analysts, as they cut their rating on Renault to “hold” from “buy”.

Reporting by Sarah White and Sudip Kar-Gupta; Editing by Mark Potter

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