Paris, France – Shares in French auto giant Renault sank on Thursday as the group’s third-quarter sales disappointed investors.
Sales grew 7.6 percent to 10.5 billion euros ($11 billion) as a drop in volume was offset by price increases for its vehicle lineup.
The company has moved to a strategy of selling fewer cars but at higher prices.
Renault confirmed its outlook for 2023, with cash flow equal or above 2.5 billion euros and an operating margin of between seven and eight percent.
“We have entered the last quarter with confidence and confirm the improvement of our profitability in the second half of the year and beyond,” chief financial officer Thierry Pieton said in a statement.
But investors were not impressed as company shares fell more than seven percent in morning trading in the Paris stock exchange.
Analysts surveyed by Bloomberg had expected sales to reach 10.77 billion euros.