Renault reported first quarter revenue down 12%, as Europe heads towards its sixth year of decline.
Renault’s sales fell 8.27 billion euro from 9.37 billion euro during the same period last year, and revenue dropped under analysts’ estimations of 8.57 million euro. Both Renault and PSA Peugeot Citroen cut their 2013 targets for industrywide European auto sales, as the crisis pushed the automotive market to a two-decade low.
“You saw a huge destocking at the dealer level, and therefore the revenue was a negative surprise, but I think this will revert over the year,” Sascha Gommel, an analyst at Commerzbank AG with a hold recommendation on Renault shares, said by phone.
Currency fluctuations cut Renault’s first quarter revenue by 251 billion euro, the main contributor to this drop being the shifts in value of the Argentinean peso and the Brazilian real against the euro. The automaker’s sales in Europe dropped 12% and the company expects the auto market in the region to drop 5% this year.
Renault’s sales in the Eurasia region increased 21%, in the Middle East and Africa sales were up 9.1% and in the Asia-Pacific region up 3.8%. In the Americas sales fell 8%, led by a 19% fall in Brazil.