Renault Exits Russia, Considers Exit

Renault SA is preparing to leave Russia amid increasing pressure to do so due to Russia's invasion of Ukraine.

On Wednesday, the company announced that it was closing its Moscow plant and evaluating the future of AvtoVaz.

In response to the slowdown in its second-largest market, Renault cut its 2017 profit margin and free cash flow forecasts.

The manufacturer now expects its operating margin to be around 3% this year, down from at least 4%.

Instead of at least 1 billion euros ($1.1 billion) in automotive operating free cash flow. Previous reports said the automaker was considering options in Russia.

Investors worried about the automaker's exposure to the market drove down its stock by as much as 2.7% in early Thursday trading in Paris.

In light of the earnings cut and asset impairment, Citigroup analyst Gabriel Adler expects further share price declines in the near term.

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