By Dominique Patton
PARIS (Reuters) -French carmaker Renault reported a small rise in first-quarter revenue on Thursday as popular new models including the electric Renault 5 and Duster SUV helped to offset the impact of reduced dealer inventories and adverse exchange rates.
The group generated revenue of 11.68 billion euros ($13.24 billion), up 0.6% from a year earlier at constant exchange rates, but slightly below the 11.71 billion euros expected by analysts in a company poll.
Group sales increased 2.9% to 564,980 vehicles, demonstrating the success of a flurry of new models launched last year.
JPMorgan analysts called the performance “a solid set of results”.
Renault shares were up 2.9% at 0900 GMT.
The results come as the auto industry grapples with the 25% import tariff imposed by U.S. President Donald Trump.
With no presence in the U.S. market, Renault is not directly affected and has not seen any secondary impact in its supply chain so far, Chief Financial Officer Duncan Minto told journalists.
However, the company has decided to cut costs given the current uncertain environment, Minto said.
“We prefer to be able to protect the company and continue this strong momentum. And so we decided to postpone some projects that were not major, which would not have an impact on the range,” he said.
That includes delaying the launch of its Alpine sports car in the United States, Minto said, and a focus on inventory levels.
One of the few companies in the sector to maintain its targets last year, Renault also confirmed it is aiming for an operating margin of 7% or more this year, which includes an estimated hit of 1 percentage point, or around 500 million euros, related to stricter European pollution regulations.
Minto said the company was not changing its product mix, even after Brussels proposed extending the time for carmakers to comply.
The share of EVs in Renault’s total group sales rose to 13% in the first quarter from 10.5% a year earlier, helped by the launch of the R5. Renault brand EV sales jumped 88% in the quarter.
The company expects further growth from the R5, now France’s leading EV, and currently launching in Britain.
($1 = 0.8819 euros)
(Reporting by Dominique Patton. Editing by Rachna Uppal and Mark Potter)
