French carmaker Renault's profits plunged 39 percent in the first half of the year driven in part by expenses related to changes in the product cycle. Its revenues were largely unchanged over last year, the Associated Press reported.

The company sold a record number of vehicles outside Europe from January to June, off-setting a sharp fall-off in its core market. Sales slipped 1 percent for the first half to €20.9 billion ($25.6 billion). Net profit was €746 million.

The company said Friday, July 27 that it expects that trend to continue in the second half of the year and become even more pronounced. It now predicts the French market will contract 10 to 11 percent, and the rest of Europe will shrink 6 to 7 percent. Global demand, by contrast, should rise 5 percent.