SA says it is on track to record its projected 2.5% hike in full-year operating profits despite reporting first-half profits just 0.4% ahead of like-2005’s €590 million ($752 million).
The French auto maker reports an operating profit of €592 million ($755 million) for the year’s first six months of 2006. Strong sales of the Clio III, launched in September 2005, helped propel automotive operations to an operating profit of €323 million ($412 million), a jump of 1.6% over last year’s €318 million ($405 million).
Further,expects to meet its mid- to long-term profit increases of 3.0% in 2007, 4.5% in 2008 and 6.0% in 2009.
Meanwhile, CEO Carlos Ghosn says a proposed tie-up withCorp. should go ahead only if the anticipated benefits are 10 times greater than the associated risks.
Among the most promising areas of cooperation is purchasing, he tells a news briefing. Small price advantages, spread across GM, Renault and Renault-partnerMotor Co. Ltd., could reap significant profits, Ghosn says.