Renault Group's Q1 Revenues Grow by 28.4 Percent

Renault reported better than expected first-quarter sales and expects a positive free cash flow in the year as a whole, although it warns of a difficult economic environment, following the end of government scrappage schemes across Europe.

Renault Group’s first-quarter 2010 revenues rose 28.4 percent to EUR9.07 billion compared to EUR7.07 billion in first-quarter of 2009, fueled by market share gains in a global market that grew by 19.3 percent.

The cars division generated revenues of EUR8.64 billion, up 30.3 percent year-on-year on a comparable basis. The Sales Financing division, RCI Banque, contributed EUR430 million to the Renault Group’s revenues, a slight 1.4 percent decline on the same period last year.

In Europe, Group sales (cars and light commercial vehicles) grew by 37.7 percent (including a 32.7 percent rise in France) in a market that rose overall by 9.7 percent. Market share increased by 2.2 points (1.6 points for the Renault brand and 0.6 points for Dacia) to a total of 10.8 percent. The Renault brand is once again No. 3 in Europe in the passenger car segment and No. 1 in the LCV segment, while Dacia was the best-selling imported brand in France in March, thanks to the Sandero.

In other regions, Renault Group recorded a 75.9 percent sales growth in South Korea (the company’s third-largest market), thanks to the Samsung brand, which delivered 41,515 units. Strong increases were obtained in Asia/Africa (+40 percent) and the Americas (+27.6 percent).

For the remainder of the year however, Renault forecasts a difficult economic environment, with the European market expected to decline by 10% on the total industry volume of 2009. Renault Group’s objectives for 2010 are to generate positive free cash flow and to increase market share.
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