Renault profit surges 25 pc as cost cuts add to Dacia sales


First-half earnings before interest, taxes and one-time items, which Renault calls its operating margin, jumped 25 percent from a year earlier to 729 million euros, the carmaker said in a statement, due to stronger demand for Dacia brand and to spending cuts, Bloomberg estimates, Agerpres informs. For Renault, Europe’s third-largest carmaker, the deliveries in the first half advanced 4.7 percent to 1.37 million cars and light commercial vehicles. Dacia’s European sales surged 35 percent, lifted by the revamped Duster sport-utility vehicle and the Sandero hatchback, informs, quoted by Agerpres. The Renault brand’s deliveries climbed 14 percent in its home region, helped by demand for the new Captur compact crossover. Sales outside Europe fell 8.9 percent. In the same time, Renault predicted a deepening contraction in Russian demand amid a slowdown in emerging markets’ growth. Renault fell the most in three weeks after Chief Financial Officer Dominique Thormann said industrywide car sales in Russia will probably drop 10 percent this year.