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Renault's $4.2 billion loss in 2009 is its biggest in history news
12 February 2010

Europe's third-largest car maker, Renault posted a 3.1 billion ($4.2 billion) for 2009, the biggest loss in its history and warned that it expects economic conditions to remain difficult in 2010 with a European market that could contract by 10 per cent.

Renault, which is France's second-largest automaker, declined to offer a 2010 earnings forecast, saying conditions would remain ''difficult,'' but did forecast a 10-per cent decline in the European auto market this year as car scrappage schemes of respective European countries come to an end.

Renault posted a net loss of 3.1 billion for 2009, its first annual loss since 1996. In 2008, it had recorded a net profit of 599 million.

Revenue declined by nearly 11 per cent, to 33.7 billion, the second consecutive year of decline, and vehicle sales fell 3.1 per cent to 2.31 million.

Renault's operating loss expanded last year to 955 million compared to 117 million in 2008. The company did however reduce its net financial debt from 7.9 billion to 5.9 billion.

Half of last year's loss of 1.56 billion came from stakes in Japanese car maker Nissan, Sweden's truck maker Volvo and Russian carmaker Avtovaz.

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Renault's $4.2 billion loss in 2009 is its biggest in history