Renault Reports €3.2b Profit in 2016
Renault Reports €3.2b Profit in 2016

Renault Reports €3.2b Profit in 2016

Renault Reports €3.2b Profit in 2016

Renault’s profit surged 38% in 2016 after the French carmaker gained market share in Europe with an expanded lineup of sport utility vehicles and upgraded models like the Megane hatchback.

Operating profit increased to €3.28 billion from €2.38 billion a year earlier, the Boulogne-Billancourt, France-based company said in a statement. The figure exceeded the €3.05 billion average of 16 analyst estimates compiled by Bloomberg. Revenue jumped 13% to €51.2 billion, Reuters reported.

“It is a very good year, and we reached the targets that we set for ourselves,” chief financial officer Clotilde Delbos told reporters on Friday. “We reached these good results,” despite struggles in once-strong markets like Russia and Brazil.

After overtaking French rival PSA Group as Europe’s second biggest carmaker last year, Renault faces the challenge of maintaining momentum as growth in its home region slows. 

That will put more emphasis on Renault’s efforts to reduce its reliance on Europe by returning to Iran and expanding in India and Africa. The company plans to present a plan in October to push annual revenue to €70 billion by 2022 and lift its operating margin to 7% of sales in five years from 6.4%.

This year, Renault targets higher operating profit and revenue at constant exchange rates, excluding the impact of Russian carmaker AvtoVAZ, in which Renault owns a majority stake and is consolidating. The company expects the global car market to grow 1.5% to 2%, paced by a 2% increase in Europe and France.

Renault’s alliance with Japanese automaker Nissan came just short of surpassing General Motors and joining the ranks of the top-three automakers by global sales. The automotive partnership, which combined delivered 9.96 million vehicles in 2016, was lifted by the addition of Nissan’s minority stake in Mitsubishi Motors.

Short URL : https://goo.gl/RvYM4M
  1. https://goo.gl/CiWsgQ
  • https://goo.gl/RDAvEC
  • https://goo.gl/s2b8x8
  • https://goo.gl/tYzURh
  • https://goo.gl/C1g6PO

You can also read ...

Iraq May Become Iran's Top Export Destination
Iran's exports to Iraq have considerably increased in recent...
Gov’t Cuts Back on Spending Amid Growing Budget Deficit
President Hassan Rouhani’s Cabinet approved plans on Sunday to...
Iran Digital Payments Exceed $16b in 1 Month
Close to 1.84 billion transactions worth more than 2.44...
Tehran Mehrabad Airport Projects Worth $20m Inaugurated
A number of development projects worth 2.7 trillion rials (...
NIOC Will Issue Manfa’ah Sukuk to Fund Projects
Head of the National Iranian Oil Company said it will issue...
Iran Engine Oil Production Rises 24%
A total of 214 million liters of engine oil were produced by...
Iran, Pakistan Confer on Broadening Trade Relations
President of Iran Chamber of Commerce, Industries, Mines and...
Packaging Industry Facing Shortage of Raw Materials
A near fivefold rise in packing paper exports, thanks to the...

Add new comment

Read our comment policy before posting your viewpoints