Renault Loses 11 Percent in Revenues, Posts Positive Cash Flow

French carmaker Renault announced today it has managed to achieve its goal of positive free cash flow for 2009, despite the 10.8 percent decrease in revenues for the year. The carmaker earned 33.7 billion euros in 2009, mostly due to the 28 percent surge registered for the last quarter.

The group's operating loss was 955 million euros, while the net loss, most of which comes from the contribution from associated companies, stands at 3.07 billion. The positive free cash flow mentioned above was 2.09 billion.

“We took the first actions to withstand the crisis as early as July 2008. Renault proved its resilience in 2009, as demonstrated by our significantly positive free cash flow. Economic conditions will remain difficult in 2010 with a 10% fall in the European market," CEO Carlos Ghosn said.

"We are continuing our work on building the Renault of the post-crisis period with the pursuit of the sales offensive in Europe, the mass market of zero-emission vehicles in 2011, the extension of the entry-car range, the strengthening of our presence in emerging countries, and the acceleration and broadening of synergies with Nissan."

For the future, Renault expects the same difficult conditions experienced last year to extend well into 2010, shrinking the European market by 10 percent. As a consequence, Renault set its goal, again, on generating positive free cash flow and continue to reduce debt.