Renault sees further surges in sales and earnings in 2014

Article by Christian A., on February 17, 2015

Renault is aiming to further hike its sales and earnings this year after posting higher sales, revenues, operating profit, net profit and operating margin in 2014. The carmaker saw strong demand for its low-cost Dacia cars and small SUVs in 2014, helping hike revenue by 0.3 percent to EUR41.06 billion. The French carmaker posted nearly 30-percent jump in operating profit to EUR1.61 billion, with its operating margin leaping to 3.9 percent from 3 percent.

Chief executive Carlosn Ghosn attributed the carmaker’s full-year performance to an "unprecedented product offensive," which he says positions the French group on track to achieve its strategic plan. The carmaker’s automotive operating profit jumped EUR363 million to EUR858 million, which represents 2.2 percent of revenues.

Renault said cost cuts and sales growth helped offset unfavorable foreign exchange rates. Renault’s auto division generated EUR38.87 billion in revenues. The French carmaker said it was able to offset negative currency variations by hiking prices outside Europe and by the strong growth of sales to partners.

The surge in profitability as well as a change of EUR596 million in the working capital requirement has paved way to an automotive operational free cash flow of EUR1.08 billion.

Renault expects global auto output to jump 2 percent this year and has vowed to hike deliveries and revenue before currency effects while increasing profitability at the group and auto-division levels.

Evercore ISI analyst Arndt Ellinghorst remarked that Ghosn's forecast for the full-year 2014 should relieve fears of Renault’s exposure to Russia. Citi analyst Philip Watkins noted that the carmaker’s results mean a strong set of earnings “considerably above expectations” despite weakness in key emerging markets.

Topics: renault, sales

If you liked the article, share on:

Comments

Recommended

What has BMW been up to lately? The company recently announced that they are currently focusing on electrification, and so far, their new architecture will enable “electrification of every model...
by - July 26, 2017
A couple of days ago, Ford came out with their pursuit-rated F-150 Police Responder, and we were quite impressed with what it has to offer. And we are pretty sure...
by - July 26, 2017
Aside from fronting Honda’s annual summer tour, pop rock band OneRepublic was also given an opportunity to customize a 2017 Honda Civic Type R. The car is a one-off and...
by - July 26, 2017
Everyone seems to know that the Alfa Romeo Giulia has been recently experiencing problems. Turns out, the blame goes to Giulia’s software. Reid Bigland, big time executive from Alfa Romeo...
by - July 26, 2017
Romanian automotive media publication cars.ro earlier said that the new Ford Fiesta will no longer be offered in the United States. Robert Stiller, Ford’s vehicle program manager for the B-segment,...
by - July 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries