Falling Revenue, Narrower Margins Put Rába in Red

Automotive

Hungarian automotive industry company Rába booked a first-quarter loss of HUF 191 million as revenue declined and margins deteriorated, state news agency MTI writes, citing an earnings report released after the closing bell on Wednesday.

Rába had booked after-tax profit of HUF 992 million in the base period.

First-quarter revenue dropped 16% year-on-year to HUF 17 bln as a fall in orders in H2 2023 materialized in production and sales figures, while there was "no significant decline" in production costs.

Market trends "fail to be promising" regarding future demand, while increasing wages continue to exert "substantial pressure" on the company's competitiveness, Rába said.

Chairman-CEO Béla Hetzmann said Raba had consistently demonstrated that it could "successfully adapt to changing market conditions and economic challenges" and pointed to cost control and efficiency improvement measures as well as the launch of a JV with Turkiye's Gidrán Armored Vehicles.

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