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.
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By GlobalDataSales 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.
