Written by Hilary Barnes
Renault, France’s second auto maker, emerged from last year in the black with a net profit of €1.73bn, although the operating profit was a slender €729m, about 1.8% of ales and down from €1.09bn in 2011.
The group thus did far better than its rival, PSA Peugeot Citroen, which reported a net loss of €5bn on February 13, reported yesterday by GEI News.
Renault also enjoyed a positive net cash flow of €597m, while PSA is fighting to stop its cash flow bleed and to turn it positive by the end of next year. Renault’s earnings were boosted by contributions from associated companies of €1.5bn, virtually unchanged from 2011, and the sale of shares in AB Volvo, the Swedish car maker, for €924m.
Sales declined by 3.2% to €41.27bn.
Compared with PSA, Renault benefits from a higher ratio of sales international sales, which account for about half its sales, and it has also done well out of its low cost Logan line vehicles.
The French market is expected to decline 3 – 5% this year after a decline by 8% last year, but the group expects the world market for cars and light commercial vehicles to expand by 3% with growth particularly in North America, India, China, Russia and Brazil.
