Renault Q1 revenue up 28 per cent

PARIS: French carmaker Renault SA said Tuesday that revenue in the first quarter increased 28 percent helped by market share gains in a growing global market.

Revenue rose to euro9.07 billion ($12.05 billion) in the three month period, from a restated euro7.07 billion a year earlier, Renault said in a statement.

Market share rose by 0.37 points globally and by 2.2 percent in its home market of Europe thanks to the renewal of its popular Megane family.

Renault repeated its February guidance, saying that the economic environment will remain ``difficult'' this year, and the European car market could contract by 10 percent.

The auto maker said it expects to increase market share and keep cash flow positive in 2010.

On Tuesday, shares closed down 3.85 percent at euro36.20. Renault and its Japanese partner Nissan Motor Co. earlier this month unveiled a wide-ranging three-way tie-up with German automaker Daimler AG, giving each company a 3.1 percent stake in the others.

The operation closes on Wednesday, when Renault will have a 43.4 percent stake in Nissan and a 1.55 percent holding in Daimler and will have made euro150 million.

The results compare to cross-town rival PSA Peugeot Citroen SA, which also reported a 28 percent increase in first quarter revenue and is counting on an increase in market share.