Renault FY net drops 14.8 pct but beats consensus UPDATE |
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Thu, 08 Feb 2007 10:01
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(adds detail)PARIS (AFX) - Renault unveiled a 14.8 pct drop in 2006 net profit to 2.869 bln eur, but this was above consensus.A consensus of analyst forecasts compiled by Thomson Financial had put net profit in the period at 2.712 bln eur.Sales in 2006 were 41.528 bln eur, down 0.8 pct and in line with consensus at 41.257 bln, amid a 4 pct decline in the number of vehicles sold.Nissan Motor Co in which Renault holds a 44 pct stake and upon which it has relied upon in recent years to boost profitability, last week warned on full-year earnings after its third-quarter operating profit tumbled 16.6 pct.Renault and Nissan CEO Carlos Ghosn said no strengthening of ties between the two companies is planned and that he will remain the CEO of both. Ghosn said each company's management will focus on its respective performance.Renault's operating margin fell to 2.56 pct from 3.2 pct in 2005, and the company reconfirmed its goal of a rebound to 3 pct in 2007.Operating profit fell 42 pct, to 877 mln eur from 1.514 bln.Renault said increased production capacity in India, Romania and Russia and the introduction of models for these growing markets 'will be the main drivers of growth' through 2009.Sales of the low-cost Logan model will be launched this year in Brazil, Iran and India, while sales in Renault's traditional market, Europe will progressively benefit from launches of new versions of the Twingo and Laguna models by the second half.Amid the expected upturn, Renault's board proposed raising the annual dividend for 2006 to 3.10 eur per share from 2.40 in 2005.paris@afxnews.comafp/mrg/jlw/mrg/mjs/jfrCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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