Renault turnover falls on declining European sales

27th April 2007, Comments 0 comments

PARIS, April 27, 2007 (AFP) - French car maker Renault said on Friday first-quarter sales fell 2.7 percent to 10.256 billion euros (13.942 billion dollars), as a sharp decline in European sales led to a 3.8 percent in the group's worldwide car sales.

PARIS, April 27, 2007 (AFP) - French car maker Renault said on Friday first-quarter sales fell 2.7 percent to 10.256 billion euros (13.942 billion dollars), as a sharp decline in European sales led to a 3.8 percent in the group's worldwide car sales.

Renault shares dipped in early trading by 0.31 percent to 97.56 euros on the results, which were lower than analysts' expecations. The overall French CAC 40 market sank slightly 0.09 percent.

Renault said European car sales fell 8.5 percent, citing the impact of its product cycle, with low-cost unit Dacia raising sales of its Logan models by 26.9 percent.

Outside Europe, car sales rose 9.1 percent, driven by 28.4 percent growth in the Americas region, notably Argentina, Brazil and Venezuela.

The Euromed zone, which comprises Eastern Europe, Russia, Central Asia, Turkey and North Africa, saw auto sales rise 4.9 percent, led by a 67.5 percent jump in Logan sales in Russia.

In Africa and Asia, sales slipped 2.3 percent, affected by a 4.2 percent fall in sales of Renault cars.

On Thursday French automaker PSA Peugeot Citroen, also facing stagnant sales in Europe, said it would cut 4,800 jobs in France this year through voluntary departures and retirements.

It attributed the move "to a context marked by a stagnation in sales in Europe over the last four years and a decline in profitability."


Copyright AFP

Subject: French news

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