Renault’s first-quarter 2006 revenues rose to €10,538m from €9,961m in Q1 2005.
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Reuters reported that the news sent the automaker’s shares up 5.2% in morning trading on Tuesday.
Renault said its automobile division generated revenues of €10,055m, a 5.8% increase on first Q1. The impact of the 2.6% decline in world sales was more than offset by growing business in the sales network – workshops, spare parts and used vehicles; increasing parts and vehicle sales to partners, in particular with the start of SM3 exports from Renault-Samsung in Korea on behalf of Nissan; and a favourable currency effect.
“In this context, the rise in first-quarter 2006 billings has prompted us to reinforce the inventory control measures implemented in the sales network,” the automaker said.
In Europe, Renault’s sales were off 7.1% in first quarter 2006. More than half of the decline arose on the least profitable sales, in line with the company’s selective commercial policy, which will continue in the coming months.
Sales of the recently redesigned Clio III rose 32% helped by the arrival of five-door versions and the older Clio II, still in production with a reduced model selection, made a “sound showing”, but the automaker said this only partially compensated for fall in Q1 sales.
Outside of Europe, Renault continued to expand, recording strong 12.4% sales growth for all three brands, Renault (+14.1%), Dacia (+11.6%) and Samsung (+7.5%).
The Euromed region (+12.1%) benefited from successful Logan launches in Russia and Morocco, the Americas region (+20%) was boosted by strong growth in Argentina’s buoyant market (+48.8%) as well as in Columbia (+72.3%), where the rollout of Logan under the Renault brand was successful.
The Africa/Asia region (+5.3%) was driven by strong business in Korea, where Renault Samsung Motor sales increased by over 7.4% thanks to the good performances of the SM3 and SM5 models in a growing market.
Renault noted that its new company organisation comprising regional management committees (RMC) set up within the framework of the Renault Commitment 2009 plan is now effective.
