Weak European Sales Results in Renault's 1Q Revenue Slide

PARIS April 25, 2003; Dow Jones reported that French auto maker Renault SA said Friday that first-quarter revenue fell 2.9% to 9.02 billion euros ($9.96 billion) from 9.29 billion euros in the same period last year, held back by weak car sales in Europe and currency effects.

The first-quarter figure was substantially above analysts' expectations of around 8.7 billion euros.

Renault said revenue at its automobiles division fell 3.2% on a consistent accounting basis to 8.55 billion euros.

Global unit sales fell 7% to 582,079 vehicles.

The company blamed the retreat of its first-quarter revenue on weak sales volumes in Western Europe and the negative impact of the depreciation of the U.K. pound, the Brazilian real and the Argentine peso.

But Renault said it benefited from a more favorable product mix in Europe, as well as buoyant sales driven by Renault Samsung Motors and a rise in powertrain sales to other companies, including Nissan.

Renault said it benefited from preliminary second-half results posted earlier this week by its Japanese affiliate Nissan Motor Co., which will have a positive impact of about 750 million euros on Renault's first-half earnings, the French company said. The definitive figure will be published after Nissan releases its audited data in May.

Renault said its sales-financing division posted a 4.2% rise in first-quarter revenue to 470 million euros.

Looking ahead, Renault said the renewal of its range will gather pace in the second half of the year with the launch of four new models in its Megane family.