ROUNDUP: Lagging Sales Sink Renault's 2006 Profits By 14.8 Per Cent

ROUNDUP: Lagging Sales Sink Renault's 2006 Profits By 14.8 Per Cent

French carmaker Renault saw profits fall by 14.8 per cent in 2006, to 2.869 billion euros (3.73 billion dollars), as sales slumped in Western Europe, the company announced on Thursday.
Of that profits total, Renault's 44 per cent share in Japanese manufacturer Nissan accounted for 1.87 billion euros, compared to 2.27 billion euros in 2005, while its 21.8 per cent ownership of Volvo reaped 384 million euros, up from 308 million euros the year before.
Turnover for the 2006 was 41.528 billion euros for the group, down 0.8 per cent from 2005, Renault said in a press statement.
Operational margin for 2006 slipped to 2.56 per cent of revenues, down from 3.2 per cent the previous year, as sales of Renault vehicles fell by 4 per cent worldwide and 4.2 per cent in France and Western Europe.
Cars bearing the Renault brand did particularly badly in Western Europe, with sales falling to 1.7 million units, a drop of 8.7 per cent.
However, Renault chief Carlos Ghosn told journalists in Paris that the company had met its goals in terms of profitability, quality and growth, although this was "not yet visible" in the results.
"Our situation is healthy," he declared, and said that Renault intended to raise dividend payouts for 2006 from 2.40 euros to 3.10 euros per share.
In its statement, Renault said it expected sales to grow slightly in 2007 as it carries out its plan of selectively introducing new models in the second half of the year.
In 2008, seven new or redesigned Renault, Dacia and Samsung models will be introduced, while another nine new models are to be launched in 2009.
As part of this strategy, production capacities at Renault factories in India, Romania and Russia are to be significantly increased, Ghosn said.
Investors apparently shared this optimism, as Renault shares rose by 1.03 per cent, to 92.85 euros, in midday trading on the Paris Bourse.

Source: [url=http://www.playfuls.com/news_09_3049-ROUNDUP-Lagging-Sales-Sink-Renaults-2006-Profits-By-148-Per-Cent.html]Playfuls.com[/url]