Renault has reported its Group revenues of €42,628 million, were up 9.4% on 2010, while its automotive net financial debt of €299 million, was down €1,136 million on December 31, 2010.

The results come in the wake of the French manufacturer's announcement to restructure its business in the UK, dropping a number of models and reducing its dealer network by around one third over the next 12 months.

It also aims to reduce its reliance on less profitable elements of the fleet market such as daily rental and Motability.

The move is aimed at returning the French carmaker's UK operations to profitability without the need to be propped up by headquarters, and strengthening the brand in the country.

Commenting on the results, Carlos Ghosn (pictured), chairman and CEO of Renault, said: "Thanks to the hard work of all its employees, Renault coped with the different crises faced throughout the year, exceeding the free cash flow objective for 2011.

“The 19% increase in Group sales outside Europe, notably in Brazil and Russia, illustrates the Group's international growth. In 2012 we expect international sales to be well in excess of 43% of the total, while maintaining the Renault brand leadership in France, and number 2 position in Europe."

Group revenues came to €42,628 million, up 9.4%, were driven by sales momentum and an improved product mix, according to Renault, with automotive contributing €40,679 million to revenues, an increase of 9.4% on 2010.

Group operating margin was stable at €1,091 million, or 2.6% of revenues, compared with €1,099 million and 2.8% in 2010. Automotive reported operating margin of €330 million (0.8% of revenues), compared with €396 million, or 1.1% of revenues, in 2010.

It said that the favourable impact of sales volumes (€455 million) and the improvement in costs as part of the monozukuri plan (€500 million) did not entirely offset negative factors, mainly external to the company, such as a €509 million rise in raw materials, a €199 million unfavourable currency effect and a €245 million negative mix/price impact.

In all, the supply constraints stemming from the Japanese tsunami had an unfavourable impact on the operating margin of automotive of an estimated €200 million in 2011. The impacts were mainly felt in production, commercial offers and logistics.

The contribution of sales financing to Group operating margin reached a new high of €761 million, up €58 million, resulting from growth in loans outstanding and a historically low cost of risk.

The contribution of associated companies continued to grow, totalling €1,524 million in 2011, driven by Nissan, compared with €1,289 million in 2010.

Net income came to €2,139 million, compared with €3,490 million in 2010, which included a capital gain of €2,000 million from the sale in October 2010 of B shares in AB Volvo. Net income Group share totalled €2,092 million (€7.68 per share).

Automotive operational free cash flow exceeded the objective reaching €1,084 million, having successfully maintained operating performance despite a series of crises (supply constraints, sovereign debt) and having rigorously managed the working capital requirement and investments in an uncertain economic environment.

This performance led to a reduction in automotive net financial debt for the third consecutive year, reaching a historically low level of €299 million on December 31, 2011, down €1,136 million.

In 2011, the Group continued to reduce gross Automotive debt through early repayment of the remaining €2 billion of the loan from the French government, while maintaining the Automotive liquidity reserve at high level of €11.4 billion, compared with €12.8 billion in 2010. The net debt to shareholders' equity ratio stood at 1.2% at end-2011, compared with 6.3% at end-2010.

In accordance with the policy announced in the mid-term plan, Renault 2016 - Drive the Change, a dividend of €1.16 per share, representing the dividends received by the Group for its interests in listed companies in 2011, will be proposed for approval of shareholders at the annual general meeting on April 27th, 2012.

2012 Outlook

The global automotive market (passenger car and LCV) is expected to grow 4% year on year in 2012. Trends will remain contrasted, with markets outside Europe continuing to grow, especially Brazil (5%) and Russia (8%). With the economic environment remaining highly uncertain, the European market is expected to contract by 3% to 4%, including a decrease of 7% to 8% in France.

Backed by the momentum of international growth, major launches (including Lodgy, Clio IV and ZOE), a new range of Energy engines and the introduction of the new design identity, Renault will continue to grow sales, in line with the objectives in the Renault 2016 - Drive the Change plan.

The Group targets positive automotive operational free cash flow in 2012, with a ratio of capital expenditures and R&D below 9% of Group revenues.