Renault has posted net income for 2012 down 15% on the previous year, but the results were better than many had expected.

Net income for the year was EUR1.77bn on revenues of EUR41.3bn, which were just 3% down on 2011.

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Operating profit was down a hefty one-third on 2011 at EUR729m.

Renault’s net financial position last year was bolstered by its shareholding in Nissan (EUR1.2bn), a one-off gain from the disposal of AB Volvo shares (EUR924m) and strong sales growth outside of Europe (+9.1%) helping to offset its European sales drop (-18%).

Renault also managed to pay off its net debt. For the first time since the beginning of the Alliance with Nissan in 1999, Renault is reporting a positive Automotive net cash position of EUR1,492m at December 31, 2012, compared with net debt of EUR299m at end-December 2011.

Nevertheless, the Automotive division posted a slightly negative operating margin (- EUR25m or -0.1% of its revenues) compared with a positive EUR330m in 2011 (0.8% of its revenues).

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In terms of the 2013 outlook, the company said is targeting positive auto earnings and operational cash flow in 2013, ‘provided European and French markets are not significantly worse than expected’.

Overall, analysts will likely conclude that Renault is at least making a profit despite severe headwinds in Europe and appears better placed right now than its cross-town rival PSA Peugeot Citroen (PSA reported a big loss yesterday).

In a statement, Carlos Ghosn, Chairman and Chief Executive Officer of Renault, said: “In a contrasted global automotive market, Renault benefited from the growth of markets outside Europe, which account for over half of its sales. In the difficult environment in Europe, and especially in France, the Group led a rigorous sales policy and began the renewal of its range with the launch of Clio IV. Thanks to the commitments of all its employees, the Renault group is pursuing its strategy of global growth while strengthening its financial situation and delivering a positive Automotive free cash flow”.