PARIS (Reuters). Renault (PA) stated Friday that the company returned to profitability in 2021. That beats expectations.

French automaker Peugeot reported a group net profit of $888 million ($1.0 billion), surpassing analysts Polled By Refinitiv who expected the figure to be 818.7 millions euros.

It comes as a result of extensive restructuring, which aims to decrease fixed costs while refocusing on Renault’s most profitable models and markets.

“Renault Group largely exceeded 2021’s financial targets despite the effect of semiconductor shortages, rising raw material costs,” stated Chief Executive Officer Luca de Meo. The group’s decision to prioritize “value over volume” and maintain financial discipline was a key factor in the success of the operation, he said.

After the 8.01 Billion Euro losses in previous years and the loss of 141 Mn euros in 2019, this year’s net profit was its first ever in ten.

Operating margins of 3.6% and 2.8% were also higher than the group expected. It previously aimed to maintain the 2.8% level of its operating margin in 2020. The 2020 operating margin was 0.8%.

Renault was hurt by falling sales and margins, as well as indirectly from difficulties at Nissan (OTC):. It had aimed to have a positive automobile operational free cash flow by 2021 after an outflow in 2020 of 4.5 billion Euros. The company reported a positive cashflow of 1.6 billion euro, stating that it completed its cost reduction program a year before the deadline.

This group is not proposing any dividends for 2021.

($1 = 0.8800 euros)