Rába Books H1 Loss as Margins Narrow, Financial Loss Weighs
Hungarian automotive industry company Rába booked a first-half loss of HUF 252 million as inflation squeezed margins and financial losses weighed, state news wire MTI writes, citing an earnings report published after the closing bell on Wednesday.
Revenue rose 27% to HUF 30 bln, but direct costs of sales climbed 31% to HUF 24.7 bln. Other operating costs jumped 52% to HUF 4.6 bln.
A financial loss of over HUF 0.9 bln bit into the bottom line.
Rába said wartime inflation lifted all cost elements and exerted "record pressure" on the efficiency of operations. "As regards long-term outlooks, extended uncertainty and at the same time continued drastically high purchase prices can be expected," it added.
Chairman-CEO Béla Hetzmann said that maintaining Rába's operating stability remains the "main target".
"We continue to exercise stringent cost control and focus consistently on the renewal of our production activities and invest heavily in passing on the additional burdens resulting from the energy costs, which increase further in the third quarter," he added.
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