Renault reports £1.7bn profits

French car maker Renault said today its earnings fell in 2011 compared to a year earlier, when it booked an exceptional €2 billion (£1.6 billion) gain on the sale of part of its stake in Sweden's Volvo.

Renault, France's second largest car producer behind Peugeot-Citroen, reported net profit of 2.1 billion euro (£1.7 billion), down from 3.4 billion euro (£2.8 billion) a year earlier, when earnings were boosted by the sale of Volvo shares Renault acquired when it sold its truck making division to the Swedish car maker in 2001.

The maker of Megane sedans and Twingo compact cars said in a statement today that it expects its core French car market to shrink by up to 8% this year, while the European car market where Renault makes well over half its sales will shrink 3-4%.