Renault Samsung profit down 3 pct on FX, local sales

SEOUL, Feb 26 (Reuters) - Renault Samsung Motors Co Ltd, the South Korean unit of French auto maker Renault SA (RENA.PA) posted a 3.4 percent fall in 2007 operating profit on a weaker won currency and slower local sales.

Higher raw material costs also put pressure on the unlisted Renault Samsung, officials said on Tuesday.

"Our profit slightly fell as a weaker won against the yen JPYKRW=R and the euro EURKRW=R boosted costs of part imports. Rising raw material costs also had an impact," Thomas Orsini, Renault Samsung's chief financial officer, told Reuters after announcing the results.

Renault Samsung, 80.1 percent owned by Renault, buys auto parts from its parent and Nissan Motor Co (7201.T), in which Renualt has a 44 percent stake.

Renault Samsung reported a 217 billion won ($229.2 million) operating profit in 2007 compared to 224.6 billion won in the previous year.

The won fell 7 percent against the yen and lost 10 percent versus the euro.

Annual sales in South Korea, where local auto makers earn higher margin, fell 1.6 percent to 117,204 vehicles.

But overall sales rose 8.3 percent to 2.8 trillion won as the company sold 54,971 vehicles in overseas markets last year, up 33 percent on a year ago. Its biggest selling overseas model is the SM3 small sedan, sold under the Nissan badge.

Renault Samsung aims to produce more than 200,000 vehicles this year as the company plans to start selling the Koleos, its recently launched cross-over, abroad, it said in a statement.

The Koleos will allow Renault to compete with other late arrivals on the growing sports utility vehicle (SUV) market such as the Citroen C-Crosser and Peugeot 4007 of cross-town rival PSA Peugeot Citroen (PEUP.PA).

The Koleos will debut in Europe in May, Jean-Marie Hurtiger, the chief executive of Renault Samsung said.

"Koleos will significantly contribute to our growth in exports, as its production should exceed QM5 production," he told reporters, referring the name of the cross-over in South Korea. ($1=946.6 Won) (Reporting by Cheon Jong-woo; Editing by Keiron Henderson and Lincoln Feast)