By Jason Chow
PARIS--French car maker Renault SA (RNO.FR) reported a sharp 86%
rise in profit as a strong European market and a low euro boosted
results, while a bigger dividend from Nissan Motor Co. offset lower
sales in its emerging markets.
Renault posted a profit of 1.4 billion euros ($1.54 billion),
far higher than the EUR749 million earned during the same period a
year earlier. Revenue rose 12% to EUR22.2 billion, up from EUR19.82
billion as European demand made up for weak sales in Brazil and
Russia, two countries that have been former engines of growth.
"Thanks to a stronger than forecasted recovery in a European
market, and despite a more adverse environment in our main emerging
markets," Renault had a strong first half, said Chief Executive
Carlos Ghosn.
Renault said the weak euro contributed 1.2% in revenue
growth.
Unit sales of all cars were nearly flat, up just 0.8%. However,
sales of Renault and Dacia cars rose 9.3% during the first six
months, offsetting a 20% decline in the Americas region and a 10%
decrease in the Eurasia region, which includes Russia.
Renault is in an alliance with Nissan Motor Co. and owns a 43%
stake in the Japanese car maker. Nissan contributed EUR979 million
in profit to Renault's bottom line, up 24%. Renault's stake in a
Russian car maker accounted for a EUR70 million loss, higher than
the EUR55 million loss from the same period in 2014.
-Write to Jason Chow at jason.chow@wsj.com
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