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Renault lowers 2019 outlook

French automaker Renault SA said Oct. 17 that it expects full-year 2019 revenue to fall between 3% and 4% versus 2018, due to "an economic environment less favorable than expected" and costs to comply with regulations.

Renault in July said it was expecting full-year revenue to be close to 2018 levels.

The company also expects its group operating margin to be about 5%, down from a prior expectation of about 6%. Renault said it expects positive operational cash flow for the 2019 second half, but it is not guaranteed for the full year, unlike previous guidance.

Renault announced in the same statement that its third-quarter revenue fell 1.6% year over year to €11.3 billion from €11.5 billion.

The entire automotive industry has suffered from a slowdown in sales, including in populous emerging markets.

Excluding the contribution of Russia's Avtovaz, automotive revenues were €9.7 billion, down 3.9% from the third quarter of 2018. The company will publish revenues for the third quarter with more details on Oct. 25. It publishes full earnings reports only every six months rather than quarterly.

The company said its new management, which changed Oct. 11 with the ouster of CEO Thierry Bolloré and his temporary replacement by CFO Clotilde Delbos, was reassessing its midterm plan targets set out in its "Drive the Future" project.