Rába Books H1 Loss on Weak Demand, Narrowing Margins

Hungarian automotive industry company Raba booked a HUF 448 mln loss in the first half as sales declined and margins narrowed, an earnings report published after the closing bell on Wednesday shows.

Revenue fell 22% to HUF 31.4 billion.

Gross profit slipped 31% to HUF 5.1 bln as feedstock and parts prices, along with energy and labor costs, climbed.

Retaining and maintaining cash-generating capacity is “an unprecedented challenge” and management is making “considerable efforts” to address the problem, the company said.

Market trends do not point to future demand and no growth is expected for the rest of the year in most geographic and product segments, it added.

Chairman-CEO Béla Hetzmann noted that the company had mitigated the financial impact of the market decline with cost controls and other short-term measures.

“We are still committed to supporting our customers through innovative solutions and high standard services, thus ensuring long-term growth and stability,” he added.

State-owned N7 National Defence Industry Innovation Company holds 54.34% of Rába’s shares. The foundation that runs Széchenyi István University owns a 20% stake in the company.

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