The 2010 results of the Group as well as the new medium-term plan will be disclosed on February 10.
Renault Group (RNO.FR) has turned around its financial results, according to a statement issued today by Carlos Ghosn, Chairman and CEO.
“Renault can already announce that, driven by record commercial results in a growing world market and good cost control, the Group has largely exceeded its annual free cash flow objective and reduced net automotive debt to €1.4 billion,” Ghosn said.
Cash flow at €1.67 billion in 2010 is more than double a previously predicted €700 million. Net automotive financial debt is now estimated at €1.43 billion.
As a result, Renault returns to profitability in 2010. However, the Group’s estimated operating margin is a paltry 2.8% of revenues, but better than a -1.2% in 2009.
Auditors have not yet signed off on the accounts. The 2010 results of the Group as well as the new medium-term plan will be disclosed on February 10. When finally announced, net income will include the contribution from Nissan, of which it holds 44% of shares, as well as a one-time capital gain of €2 billion from the sale of the B shares of heavy truck maker Volvo AB.
Renault and rival French automaker Peugeot-Citroen, number three and two European automakers respectively, received loans of €3 billion from the French taxpayers in 2008 when global financial markets were frozen and vehicle sales collapsed. Each has since repaid €1 billion. Renault said some more of the loan will be repaid this year.
The five regions of the Renault Group increased volumes and market share in all regions except for the “Euromed” region where sales decreased slightly by 0.2%. All the brands contributed to the Group’s sales increase: Renault grew by 14%, Dacia by 12% and Renault Samsung Motors by 19%. Sales of Lada at 570,014 units, is a 37.6% increase compared to 2009.
In Europe, the Renault group raised the sales volume by 7.4% with 1,642,000 units sold in a market that contracted by 3.7%. The Renault brand moved up one place in the rankings to become Number 2 in passenger car and light utility vehicle sales.
Outside Europe, the Renault Group increased sales by 26% to 983,731 units. Sales of Renault Samsung Motors increased by 16.5%, reaching 11.9% of market share in the restricted South Korean market. With 155,697 units sold, South Korea is now Renault Group’s fourth largest market.
The Renault group sales outside Europe accounted for 37% of total sales, compared with 34% in 2009.
