PARIS (Bloomberg) -- Renault said full-year earnings rose 59 percent as low-cost cars from the company's Dacia division pushed delivery growth and the automaker reduced costs.
Earnings before interest, taxes and one-time items advanced to 1.24 billion euros ($1.69 billion) from 782 million euros in 2012, the automaker said today in a statement.
Renault forecast today that 2014 revenue and operating profit will increase, and that the automotive division will achieve a positive free cash flow for the year.
Renault had 2.5 billion euros in cumulative free cash flow in the last three years, exceeding a target of 2 billion euros, the automaker said today. The company set a goal of generating annual positive free cash flow in the next three years.
New targets for the next three years also include boosting revenue to 50 billion euros and reaching a return on sales of more than 5 percent. The goal is underpinned by cost cutting, including a work force reduction and wage freeze that unions agreed to a year ago.
"The commitment of all Renault employees enabled the group to meet its 2013 objectives in an unfavorable environment," CEO Carlos Ghosn said in the statement. "Strengthened by this result, the group can begin the second part of its strategic plan with confidence."