UPDATE 1-Renault sales fall as forex overcomes pricing gains

Thu Oct 24, 2013 12:14pm EDT

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PARIS Oct 24 (Reuters) - French carmaker Renault said third-quarter revenue fell 3.2 percent as Iran sanctions and weaker emerging market currencies more than offset gains in pricing and sales volumes.

Revenue declined to 8 billion euros ($11.04 billion) in the three months ended Sept. 30 from 8.26 billion a year earlier, the company said in a statement on Thursday.

"The group remains on track to meet its objectives for 2013," Renault said, reiterating its pledge to deliver a global sales increase backed by a positive auto division operating margin and free cash flow.

A weakening of the Brazilian real, Argentinian peso, Indian rupee and Russian rouble against the euro consumed about 440 million euros of automotive division revenue, which fell 3.2 percent, partially offset by higher pricing.

Renault has been narrowing the pricing gap with German archrival Volkswagen as it rolls out new models such as the Captur compact SUV and revamped Clio mini.

Global sales volumes rose 3.1 percent as strong demand in Russia and Turkey helped make up for 23,000 lost vehicle sales to Iran, halted by international sanctions.

The RCI Banque car loans arm contributed a 0.4 percent increase in quarterly revenue to 515 million euros as the number of new financing contracts rose by a quarter to 286,300 over the three months. ($1 = 0.7245 euros) (Reporting by Laurence Frost; Editing by James Regan)

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