Rába profit plunges as vehicle business sales slow in Q1
Hungarian automotive industry company Rábaʼs first-quarter after-tax profit plunged 84% year-on-year to HUF 110 million, hit by a big drop in sales of its vehicle business, an earnings report released early today shows, according to Hungarian news agency MTI.
Revenue was down 31% at HUF 9.6 billion. Sales of the vehicle business slipped 74% to HUF 1.2 bln, but turnover of the axle business dropped just 13% to HUF 5.2 bln.
Exports generated 72% of revenue.
Rába noted that sales in the vehicle business were “characterized by a cyclicality different from the base period”.
While the businessʼ exports to European markets rose 3% to €3 mln, domestic sales fell 92% to HUF 293 mln, it added.
In the base period, Rába won a HUF 5 bln contract to supply chassis for emergency services vehicles to state-owned BM HEROS, according to earlier reports.
Direct cost of sales was down 35% at HUF 7.5 bln.
Gross profit fell 91% to HUF 2.1 bln.
Rábaʼs operating profit fell 42% to HUF 232 mln.
István Pintér, the companyʼs chairman-CEO, said a HUF 10.5 bln technology development program approved by shareholders at an annual general meeting in April would “further strengthen” Rábaʼs position on the global automotive industry market.
“If everything goes as planned, every second or third European heavy truck will roll off the assembly lines on Rába-manufactured front axles,” he said.
The state holds a 74.4% stake in Rába.
Moody's Affirms Budapest's 'Baa3' Rating
Bulgaria's Household Income, Spending Rise 20% in 2023
Hungary, UAE Sign Defense Industry Agreement
Hungary Launches HUF 15 bln Tourism Sector Support Program
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
