Renault pledges to stay profitable in 2013 Renault suffered a steep decline in operating profit last year because of turmoil in its European markets but said strong demand in Asia, Russia and Latin America would keep it in the black in 2013. The French carmaker's sales fell 18 per cent in Europe, a worse performance than its ailing domestic rival PSA Peugeot Citroën. But, unlike Peugeot, it has managed to remain profitable because of its lucrative alliance with Japan's Nissan and the fact that 50 per cent of its sales are outside Europe. Nevertheless, operating income was €122m last year, compared with €1.2bn in 2011. Group sales fell 3.2 per cent year-on-year to €41.3bn. Net income fell 19 per cent to €1.7bn - with €1.2bn of that coming from the contribution from Nissan, in which Renault owns a 43 per cent stake. Net income was also boosted by a one-off €924m gain from the €1.5bn December sale of its 6.5 per cent stake in Volvo, the Swedish carmaker. Renault is engaged in a plan to cut 7,500 jobs in France, though it has managed so far to avoid the political storm that engulfed Peugeot over its decision to close the Aulnay carmaking plant near Paris. It forecast that European sales would fall at least 3 per cent this year and by 3-5 per cent in France. Peugeot was more pessimistic when it reported €5bn of losses this week, saying that it thought European sales would fall up to 5 per cent. Renault said it expected sales growth this year and positive operational free cash flow "provided European and French markets are not significantly worse than expected." It expects the global car market to grow by 3 per cent in 2013, fuelled by an 11 per cent cumulative rise in China, North America and India; 5 per cent in Russia and 1.5 per cent in Brazil. Unlike Peugeot, which has been burning through €200m of cash each month in its autos division, Renault said operational free cash flow in its autos unit was €597m in 2012, down from €1.1bn in 2011. The Volvo sale meant it managed to have net cash for the first time since the creation of the Nissan alliance in 1999. Net cash was €1.49bn at the end of December, compared with net debt of €299m in 2011.