French car maker Renault sees earnings slashed by restructuring
A Renault Dezir concept car is displayed during the first press day of the 65th Frankfurt Auto Show in Frankfurt, Germany, Tuesday, Sept. 10, 2013. (AP Photo/Frank Augstein)
The Associated Press
Published Thursday, February 13, 2014 8:29AM EST
PARIS - Renault says its earnings were more than halved last year even as car sales began to rebound, as heavy restructuring costs ate into the French car maker's profits.
The maker of the Twingo and Clio hatchbacks said that plans to revamp its product lineup beginning in the fall and expansion in the developing world will help it lift revenue to 50 billion euros ($68 billion) by 2016, up from 41 billion euros last year.
Renault said net profit fell to 586 million euros last year, down from 1.75 billion euros in 2012. The 2013 results included 1.3 billion euros in charges for restructuring and other charges that weighed on earnings.
Renault said plans underway will lift profitability to at least 5 per cent of sales by 2016, up from 3 per cent last year.