Renault has reported a tripling of net income in its 2014 full-year results in spite of deeper losses incurred in Russia.

“We met all the objectives announced for 2014. This milestone positions us on track to achieve our strategic plan, ‘Renault Drive the Change’. 2015 should allow us to take a new step forward, thanks to an unprecedented product offensive in the history of Renault,” said Carlos Ghosn, Chairman and Chief Executive Officer of Renault.

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The company said that group net income rose to EUR1.89bn in 2014, up from EUR586m in 2013. The group’s 2014 operating profit reached EUR1,609m, compared to EUR1,242m in 2013 (3.9% of revenues vs 3.0% in 2013). Cost reduction contributed an EUR844m improvement to operating profit in 2014 versus 2013 and Renault said that Alliance synergies are continuing to grow.

In 2014, Renault Group revenues came to EUR41,055m, an increase of 0.3% compared to 2013. At constant exchange rates, revenues grew by 3.1%. Renault Group vehicle registrations were up 3.2% globally in 2014.

At an analysts’ presentation, Ghosn drew attention to a product offensive that included stronger sales from low-cost Dacia brand as well as the success of compact Renault models such as the Captur SUV and new Clio.

He also said that Renault was well placed in emerging markets for the medium-term and showing ‘resilience’ in them, despite current adverse developments in a number of emerging markets.

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However, the crisis in Russia hit Renault’s bottom line in 2014 as losses at AvtoVAZ incurred in Renault’s accounts widened to EUR182m in 2014 versus EUR34m in 2013. An analyst report this week said that the losses in Russia could be much deeper in 2015 and it has announced suspended production at its Avtoframos plant.

In spite of the uncertainties surrounding numerous economies, Renault said that global car demand should continue to grow this year (+2 %). The European market should also show a slight positive growth (+2 %) but Renault expects to see “high volatility” in its main emerging markets.

In 2015, Renault expects to further increase its registrations and revenues (at constant exchange rates), continue to improve operating margin and generate positive automotive operational free cash flow.

See also: 

RUSSIA: Renault faces ‘major headache’ on Russia exposure – analyst

RUSSIA: Renault to shut Moscow plant for three weeks as market stutters