Renault group revenues rose 9.4% year on year in 2011 to EUR42,628m while operating margin slipped to EUR1,091m, or 2.6% of revenues, from EUR1,099m and 2.8% in 2010.

But operating income was EUR1,244m versus EUR635m in 2010.

Associated companies contributed EUR1,524m compared with EUR1,289m in 2010.

Net income of EUR2,139m compared with EUR3,490m in 2010, which included a EUR2bn capital gain from the sale of B shares in AB Volvo.

Carlos Ghosn, chairman and CEO, said: “Thanks to the hard work of all its employees, Renault coped with the different crises faced throughout the year, exceeding the free cash flow objective for 2011.

"The 19% increase in group sales outside Europe, notably in Brazil and Russia, illustrates the group’s international growth. In 2012 we expect international sales to be well in excess of 43% of the total.”

Automotive contributed EUR40,679m to revenues, an increase of 9.4%.

Automotive reported operating margin of EUR330m (0.8% of revenues), compared with EUR396m, or 1.1% of revenues, in 2010. Negative factors included a EUR509m rise in raw materials, a EUR199m unfavourable currency effect and a EUR245m negative mix/price impact.

Supply constraints stemming from the Japanese tsunami hit the operating margin of automotive by an estimated EUR200m in 2011.

Outlook

Renault expects the global market for cars and light commercials to grow 4% year on year in 2012 with markets outside Europe continuing to grow, especially Brazil (5%) and Russia (8%). With the economic environment remaining highly uncertain, the European market is expected to contract by 3% to 4%, including a decrease of 7% to 8% in France.

Renault said international growth, major launches, a new range of engines and the introduction of a new design identity would see it continue to grow sales but did not provide specifics.