Rába issues profit warning
Listed automotive industry company Raba said late Wednesday that it could report a consolidated first-quarter operating loss of "nearly HUF 500 million", mainly because of the impact of the "drastic" increase in energy prices at its energy-intensive axle business, according to a report by state news wire MTI.
Rába said the war in Ukraine had contributed to keeping energy prices high.
To mitigate the impact on its business, Rába said it reacted by "by increasing the flexibility of production and introducing stringent cost management measures" and is now focusing on "improving the efficiency of production processes and...technology".
Shifting a "fourfold-fivefold" increase in energy prices to customers is "a great challenge", it added.
Rába had after-tax profit of HUF 1.3 billion in 2021, improving from a HUF 1 bln loss in 2020, supported by the sale of real estate and a narrower financial loss.
The company will release first-quarter earnings on May 18.
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