Renault logs 59% rise in operating profit in 2013

Article by Anita Panait, on February 14, 2014

Renault posted a 59-percent rise in earnings before interest, taxes and one-time items in full year 2013 to EUR1.24 billion ($1.69 billion) from EUR782 million in 2012. The French carmaker expects its revenue and operating profit for 2014 to surge, with its automotive division achieving a positive free cash flow for the year.

Renault is pressing into emerging markets to offset the slumping demand for vehicles in Europe, which has already reached a two-decade low.

Earlier this month, Renault disclosed plans to double its market share in India. It also received regulatory approval in December to build its first plant in China. Renault said that it had EUR2.5 billion in cumulative free cash flow in the last three years, surpassing a target of EUR2 billion.

For the next three years, the French carmaker is eyeing to hike revenues to EUR50 billion, reach a return on sales of over 5 percent and log a positive free cash flow in each of the three years.

"The commitment of all Renault employees enabled the group to meet its 2013 objectives in an unfavorable environment," chief executive Carlos Ghosn said in the statement. "Strengthened by this result, the group can begin the second part of its strategic plan with confidence."

According to figures from the ACEA trade group, Renault was the only one of the five top carmakers in Europe to post group-wide sales growth in the region in 2013, thanks to a 23-percent surge in sales of its nameplate, allowing the company to more than offset a 1.5 percent drop at the Renault brand.

Topics: renault, profit

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