Renault Sinks After Cutting Guidance, Naming Interim CEO (1)

Renault SA sank the most since March 2020 after the French automaker slashed its profitability outlook and named company veteran Duncan Minto interim chief executive officer.

The shares dropped as much as 18%, enduring their biggest drop since the start of the Covid-19 pandemic and weighing on indexes.

Late Tuesday, Renault cut its guidance for operating margins this year to around 6.5%, from at least 7% previously. Citing intensifying competition and declines in the automotive market, the manufacturer also lowered its expectation for free cash flow to between €1 billion ($1.2 billion) and €1.5 billion, from an earlier projection of ...