REFILE-UPDATE 1-Renault sticks to cash flow goal after H1 profit

(Repeats to additional subscribers, corrects dateline)

* H1 sales rise 23.1 pct like-for-like to 19.668 bln eur

* H1 recurring operating profit 780 mln eur, 4 pct of sales

* Sticks to free cash flow target in uncertain environment

(Adds details from statement)

BOULOGNE-BILLANCOURT, France, July 30 (Reuters) - French carmaker Renault (RENA.PA) said it was sticking to its target of generating free cash flow in full-year 2010 after swinging back to first-half profit.

European carmakers, cheered by signs that underlying demand was coming back as scrapping schemes ground to a halt, are now fearful that austerity measures including tax hikes in some markets will slow down the recovery.

"In an uncertain environment in the second half of 2010, the group will continue to focus on its key target of generating positive free cash flow for the full year," Renault said.

The group achieved positive free cash flow of 1.420 billion euros in the first half in its automotive division, thanks to lower expenses and higher operating income, it said.

Half-year sales rose 23.1 percent like-for-like to 19.67 billion euros, while recurring operating profit reached 780 million euros or 4 percent of sales.

In the year-earlier period the group had posted a recurring operating loss of 620 million euros.

Renault generated a first-half net income of 823 million euros, up from a 2.71 billion net loss.

Earlier this month Renault hiked its outlook for European and world car markets this year, saying consumer demand had proved more robust in some than it had expected.

It said at the time it saw the European car market falling 7-9 percent against a previous forecast of a 10 percent, and predicted an 8 percent increase in the world car market, led by emerging markets. [ID:nLDE6670K1]

Rival PSA Peugeot Citroen (PEUP.PA), Europe's second-largest carmaker, on Wednesday warned the economic environment would get tougher in the second half, after it swung to a first-half profit. [ID:nLDE66Q1GN]

(Reporting by Helen Massy-Beresford, editing by Geert De Clercq)