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Renault profits move up a gear


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Renault profits move up a gear

French carmaker Renault has reported top gear earnings for 2016.

Its operating profit jumped 38 percent as it increased market share in all regions, particularly Europe, boosted by a number of new models.

Operating profit was 3.282 billion euros in 2016 on 51.2 billion euros in revenue, up 13.1 percent, Renault said. That lifted its operating profit margin to 6.4 percent from 5.2 percent – meeting existing targets a year early.

Worldwide deliveries rose 13 percent last year.

The company set itself ambitious new mid-term goals for both sales and profits.

The 2016 results were achieved “in spite of the fact that some of our important markets are still significantly lower,” Chief Financial Officer Clotilde Delbos said. “That means there is plenty of potential for Renault to continue to grow.”

Renault is optimistic about the embattled Brazilian and Russian car markets saying they should bottom out at “stable” levels this year.

Its struggling Russian venture Avtovaz reported a 39 percent reduction in losses last year following efficiency improvements and cost-cutting.

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