According to Renault, Europe’s third-largest carmaker, the company’s profit went up by a good 59 %, mainly because the Group lowered costs and the low-cost, no-frills, models from its Dacia subsidiary pushed sales up.
Thanks to its very good results for the last quarter and now for the whole 2013 year, Renault’s stock went up the most in the last five weeks, gaining close to 5 % to 69.20 euros, the biggest intraday jump since January 7, while the overall growth in the last year is a very good 60 %.
“The commitment of all Renault employees enabled the group to meet its 2013 objectives in an unfavorable environment,” Chief Executive Officer Carlos Ghosn said in a statement. “Strengthened by this result, the group can begin the second part of its strategic plan with confidence.”
While revenue went slightly up by 0.5 % to 40.9 billion euros, total earnings, before interest, taxes and one-time items increased to 1.24 billion euros ($1.69 billion) and Renault forecast for the whole 2014 a positive free cash flow, sales and operating profit gains.
The Group’s total tally for sales in 2013 was 2.63 million cars and light commercial vehicles, up 3.1 % from a year before (including the Dacia and Samsung brands).