Re­nault net profit ups but Rus­sian unit a drag

The Pak Banker - - COMPANIES/BOSS -

Re­nault said Fri­day net profit for 2015 was up 48.1 per­cent to 2.96 bil­lion euros ($3.3 bil­lion), al­low­ing it to hit prof­itabil­ity tar­gets two years early, but it took a hit in Rus­sia. The French car­maker saw turnover surge 10.4 per­cent to 45.3 bil­lion euros. But the eco­nomic down­turn in Rus­sia hit its Av­to­vaz unit there hard, with a loss of 620 mil­lion euros.

Re­nault, which op­er­ates Av­to­vaz with its part­ner Nis­san and Rus­sian car­maker Rostec, said the Rus­sian car mar­ket slumped 35 per­cent as the coun­try's econ­omy was slowed dra­mat­i­cally by in­ter­na­tional sanc­tions over its ac­tion in Ukraine and by the crash in oil prices. The French com­pany said it was in talks with share­hold­ers of Av­to­vaz's hold­ing com­pany "with a view to a re­cap­i­tal­i­sa­tion which could lead to the con­sol­i­da­tion of the com­pany by Re­nault". Re­nault chief ex­ec­u­tive Car­los Ghosn said 2015 had been "a good year".

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