 The company is benefiting from increased demand and cost cuts |
French carmaker Renault has reported a better-than-expected profit for the first six months of this year, helped by healthy sales of its Megane model. The company lifted its earnings targets for the year, adding that sales outside of Western Europe were proving to be one of the main drivers of growth.
Europe's fourth-biggest producer of cars said first-half net income jumped 29% to 1.5bn euros ($1.8bn; �990m).
Its full-year target for profit margins will climb to 5.5% as a result.
"These are excellent results," said Patrice Solaro of Kepler Equities.
"A market rebound helped and cost-cutting efforts over the past two to three years are bearing fruit," he said.
Renault's operating profit more than doubled to 1.3bn euros in the first half of 2004, while sales added 11 percent to 20.8bn euros.
The company is forecasting that demand in western Europe will rise by as much as 2% this year.
During early trading in Paris, Renault shares added more than 4% to 64 euros.
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