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Renault 2013 Profit Falls; Announces 2014 - 2016 Action Plans - Quick Facts

French car maker Renault (RNT.L,RNSDF.PK,RNSDY.PK) said that net income, Group share for 2013 sharply declined to 586 million euros 1.749 billion euros last year.

Group revenues in 2013 came to 40.93 billion euros, up from 40.72 billion euros last year.

The prior year results have been restated for retrospective application of IFRS 11 "Joint Arrangements" and revised IAS 19 "Employee Advantages.

The company said that a dividend of 1.72 euros per share, unchanged vs last year, will be submitted for approval at the next Shareholders' Annual General Meeting.

Looking ahead for 2014, the Group expects the European markets to stabilize. At the same time, growth in emerging markets, still driven by China, is more uncertain in the short term. In this context Renault aims to increase registrations and Group revenues at constant exchange rates, improve Group operating profit and that of the automotive division, achieve positive Automotive operational free cash flow.

Renault announced 2014 - 2016 action plans. The Renault group said it is going to accelerate the renewal and expansion of its product line-up starting in the fall of 2014 with the launch of an all-new Twingo and Trafic van. These will be followed by the successors of Espace, Megane, Scenic and a new D sedan which will all share the new alliance 3 million CMF C-D platform.

Simultaneously, the group is going to extend its market coverage with a complete line-up of cross-over vehicles, an A-entry vehicle designed for India and South America as well as new pick-up trucks for emerging markets.

Following a successful first phase, the group is aiming at capturing more than 8% market share in Brazil and Russia and 5% in India.

The company said China will become a top priority in the coming years with the construction of a new plant in Wuhan with an initial capacity of 150,000 units, designed to produce C and D segment cross-overs.

The company stated that increase synergies from the Alliance will contribute to improving the company's profitability. The convergence projects recently announced in purchasing, engineering, manufacturing and supply chain, and human resources will generate a minimum of 4.3 billion euros by the end of 2016.

By the end of the plan, the Renault group aims to deliver 50 billion euros in consolidated group turnover at the current scope of consolidation. Group turnover includes sales of vehicles and parts, associated services and business with partners; deliver a sustained level of profitability by achieving an operating profit margin of at least 5% of group turnover, while achieving a positive free cash flow each year.

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