Renault has reported that its Q1 revenue fell 2.7%, year-on-year, on the back of lower European sales.
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Revenue dropped to EUR10.3bn from EUR10.5bn a year earlier, Renault said in a statement. Automobile division sales declined 2.8% to EUR9.78bn.
“It’s more of the same: a huge volume drop in Europe and better elsewhere,” said Philippe Houchois, an analyst with JPMorgan Chase & Co, Bllomberg reported.
He has an “overweight” rating on the stock. “At the same time, the performance outside Europe was not as good as we’ve seen recently.”
Global sales fell 3.8% to 597,600 vehicles in the quarter from 621,400 a year earlier, led by an 8.5% decline to 417,200 units in Europe, Renault said.
“In France and Europe, the decline in sales is mainly linked to the product cycle,” Renault said.
Renault will be hoping for a product boost with the impact of the new Twingo and Laguna later this year.
Renault’s poor Q1 results follow a decline in alliance partner Nissan’s profits for the first time in four years.
