Renault shares slide as profitability lags PSA rival

Renault shares posted the biggest decline in a year after first-half profit fell short of estimates and the car maker said price pressures are rising in some markets.

The stock fell as much as 7.2% after the French carmaker warned that it was struggling to get consumers to pay for all the costs of new technology and failed to keep pace with Paris-based rival PSA Group. While Renault’s operating margin increased to 6.2% of sales from 6.1%, profitability at its rival, which makes Peugeot and Citroen cars, jumped to a record of 7.3%.

“There were clearly expectations of stronger operating results,” especially in automotive earnings, said Arndt Ellinghorst, a London-based analyst with Evercore ISI.