Renault Samsung profit down 3 pct on FX local sales
SEOUL, Feb 26 (Reuters) - Renault Samsung Motors Co Ltd,
the South Korean unit of French auto maker Renault SA (RENA.PA: Quote, Profile, Research)
posted a 3.4 percent fall in 2007 operating profit on a weaker
won currency and slower local sales.
Higher raw material costs also put pressure on the unlisted
Renault Samsung, officials said on Tuesday.
“Our profit slightly fell as a weaker won against the yen
%26lt;JPYKRW=R%26gt; and the euro %26lt;EURKRW=R%26gt; boosted costs of part
imports. Rising raw material costs also had an impact,” Thomas
Orsini, Renault Samsung’s chief financial officer, told Reuters
after announcing the results.
Renault Samsung, 80.1 percent owned by Renault, buys auto
parts from its parent and Nissan Motor Co (7201.T: Quote, Profile, Research), in which
Renualt has a 44 percent stake.
Renault Samsung reported a 217 billion won ($229.2 million)
operating profit in 2007 compared to 224.6 billion won in the
previous year.
The won fell 7 percent against the yen and lost 10 percent
versus the euro.
Annual sales in South Korea, where local auto makers earn
higher margin, fell 1.6 percent to 117,204 vehicles.
But overall sales rose 8.3 percent to 2.8 trillion won as
the company sold 54,971 vehicles in overseas markets last year,
up 33 percent on a year ago. Its biggest selling overseas model
is the SM3 small sedan, sold under the Nissan badge.
Renault Samsung aims to produce more than 200,000 vehicles
this year as the company plans to start selling the Koleos, its
recently launched cross-over, abroad, it said in a statement. Continued…
