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UPDATE 1-Renault pricing weakness overshadows record first half

* Shares slump, disappointment over margins

* Renault margins weaker than at PSA (Adds detail, background)

PARIS, July 28 (Reuters) - Softer Renault pricing kept a lid on core profitability in the first half, the French carmaker said, even as the inclusion of Russian Lada sales and higher earnings from partner Nissan pushed revenue and profit to a new record.

Renault shares fell 6 percent in early session trading after the company said on Friday that its manufacturing operating margin rose just 0.1 points to 4.8 percent, even as deliveries jumped 10.4 percent.

The results drew unfavorable comparisons with domestic rival PSA, a day after the Peugeot maker posted a 7.3 percent core operating margin despite flat sales.

The core automotive margin was "slightly up on last year but still a little bit below some of the benchmarks," Societe Generale analyst Stephen Reitman said.

The Renault-Nissan alliance expects to surpass Toyota and Volkswagen this year to become the world's largest auto group by sales, Chief Executive Carlos Ghosn has said.

Renault, Nissan and recently acquired Mitsubishi Motors will unveil new mid-term sales goals and plans for closer operational integration later in 2017.

Renault's first-half performance "puts us on solid ground for the implementation of our next strategic plan," Ghosn said in Friday's company statement.

The consolidation of Russian subsidiary AvtoVAZ helped group revenue to rise 17 percent to 29.5 billion euros ($34.5 billion). Operating profit increased in step to 1.82 billion euros for a 6.2 percent group margin, up 0.1 point.

While Renault's overall operating profit was in line with analyst expectations, its 27 billion euros in automotive revenue fell almost 500 million euros short of consensus, based on the median of 12 estimates polled for Reuters.

Finance chief Clotilde Delbos said the European business suffered from a "negative trend in the channel mix," reflecting a shift towards less profitable clients and outlets.

"We've also seen some pricing pressure in some countries," she added, citing South Korea in particular.

"There were clearly expectations of stronger operating results," London-based Evercore analyst Arndt Ellinghorst said, describing the Renault numbers as a "mixed bag."

Efficiency savings, which had all but evaporated last year, contributed a 204 million-euro profit gain as cost-cutting efforts resumed. Net income jumped 58 percent to 2.38 billion euros, boosted by 1.29 billion euros in profit from 43.4 percent-owned Nissan, up 72 percent.

($1 = 0.8555 euros) (Reporting by Laurence Frost; Additional reporting by Gilles Guillaume; Editing by Sudip Kar-Gupta)