PARIS -- Renault said first-quarter revenue fell 9 percent on declining European demand as the car industry struggles with a sluggish economy in the region and overcapacity.
Revenue decreased to 9.54 billion euros ($12.6 billion) in the first three months from 10.4 billion euros a year earlier, the company said.
Sales volumes fell 7.9 percent to 638,498 units due to a very unfavorable market in Europe, Renault said.
Renault results suffered from comparisons with a year-ago period boosted by scrappage incentives for car buyers to trade in old vehicles for newer vehicles.
"The European market, and the French market in particular, was weaker than expected," Renault said in a statement on Wednesday. "The fall in the European market is expected to slow in the second quarter."
Renault's domestic deliveries declined 25 percent in the first quarter from a year earlier, France's automakers' association CCFA reported earlier this month. The company's registrations in the 27 EU countries plus Switzerland, Norway and Iceland fell 23 percent over the same period to 281,969 vehicles, according to industry association ACEA.
Renault confirmed its full year objective of generating a positive automotive operational free cash flow in 2012, with a ratio of capital expenditures and r&d below 9 percent of group revenues.