In the first quarter of 2011, Renault’s revenue increased by 15% due to the strong demand for the models it sells in Russia as well as in emerging markets. From a revenue of 9.07 billion euros in the first quarter of 2010, Renault now posted a revenue of 10.43 billion euros ($15.27 billion). But the estimates of six analysts as compiled by Bloomberg pointed to a 9.5 billion-euro median.
In a statement last Tuesday, CEO Carlos Ghosn said that sales were boosted by “stronger markets and [its] good international sales performance.”
Renault is relying on the rising demand in emerging markets for its budget models to sell 3 million vehicles with a 5% profit margin in 2013.
Last year, Renault posted 2.63 million deliveries and a 2.8% margin. The biggest contributor to this sales growth is an 88% increase in the Eurasia region, which includes Russia and other former Soviet states.
A 15% sales increase was posted by Renault and its main automotive division, with sales reaching 9.97 billion euros. Meanwhile, the sales-financing unit reported an 8.4% gain to 466 million euros.
Renault said that first quarter results were ahead of plans. It also revealed that it expects to report higher sales volumes and revenue in 2011 compared to 2010.
The carmaker is aiming to achieve an automotive operational free cash flow of over 500 million euros with a ratio of capital expenditure and research and development that’s near to 9% of revenue.