Renault (Swiss: RNO.SW – news) said Friday net profit for 2015 was up 48.1 percent to 2.96 billion euros ($ 3.3 billion), allowing it to hit profitability targets two years early, but it took a hit in Russia.
The French carmaker saw turnover surge 10.4 percent to 45.3 billion euros.
But the economic downturn in Russia hit its Avtovaz unit there hard, with a loss of 620 million euros.
Renault, which operates Avtovaz with its partner Nissan and Russian carmaker Rostec, said the Russian car market slumped 35 percent as the country’s economy was slowed dramatically by international sanctions over its action in Ukraine and by the crash in oil prices.
The French company said it was in talks with shareholders of Avtovaz’s holding company “with a view to a recapitalisation which could lead to the consolidation of the company by Renault”.
Renault shares were up more than 3.0 percent at 70.98 euros in early trading on the CAC 40.
