Renault profits rise thanks to cost cuts

Staff Writer
Columbus CEO

PARIS (AP) — French carmaker Renault says its profits in the first half of the year rose, partly thanks to lower costs as its revenue dropped.

The maker of the Twingo and Clio hatchbacks said Tuesday its net income rose to 749 million euros ($1 billion) from 39 million euros a year earlier.

It sold more vehicles — 1.36 million compared with 1.30 million a year earlier — mainly thanks to an improvement in European markets. But revenue still fell, by 3 percent to 19.82 billion euros. The company reined in its costs of production as well as research and development

Though Renault upgraded its expectations for sales in Europe this year, it said the market overall will remain challenging, mainly because of weaker demand in emerging economies.