Renault's Q1 revenue up 11.7 percent on strong European demand
By Gilles Guillaume and Mathieu Rosemain
PARIS (Reuters) - Renault's revenue rose 11.7 percent in the first three months of the year boosted by demand for new model ranges in Europe, the French carmaker said on Thursday.
Revenue increased to 10.5 billion euros (8.25 billion pound) in from 9.39 billion in the same period last year.
Analysts had expected sales of 10.29 billion euros for the quarter, based on the median of eight analysts estimates given in a Reuters poll.
Vehicle registrations over the period were up 7.3 percent at 692,453.
Accounting for 63 percent of total new registrations, Europe accounted for the bulk of Renault's sales in the quarter, helped by the recent launches of the Espace minivan, the Kadjar crossover and the Talisman saloon car.
The European share of sales is the largest recorded since 2011, reflecting the shrinking of former key markets such as Russia and Brazil, which suffer from an economic dowturn.
Renault is expanding its low-cost offering in Europe and Asia, with the company investing more than $1 billion in the supplier network supporting its Moroccan plants, while its Kwid mini-SUV has proved a hit in the difficult Indian market.
The company also raised its 2 percent European market growth forecast for 2016 to 5 percent, while cutting its Brazilian market growth forecast to a fall of 15 to 20 percent from a fall of 6 percent previously.
It raised its worldwide market forecast to growth of 2 percent from a previous 1 to 2 percent.
Renault reaffirmed its full-year targets for 2016, which include a rise in group revenue and operating margin.
(Reporting by Mathieu Rosemain and Gilles Guillaume; editing by Michel Rose, Greg Mahlich)
