Rába breaks even in Q3 on slightly improved margin
Hungarian automotive industry company Rába broke even in the third quarter, after booking an after-tax loss of HUF 173 million in the base period, as margins improved slightly and domestic sales climbed, an earnings report published early today shows, according to Hungarian news agency MTI.
Revenue edged up half a percent to HUF 8.45 billion, one-tenth of a percentage point more than the direct cost of sales, which was enough to raise operating profit a full one percent to HUF 1.79 bln.
Domestic sales climbed almost 15% to HUF 2.84 bln, while export sales dropped a little more than 5% to HUF 5.62 bln.
In a summary of Q1-Q3, Raba said low activity on foreign markets has put pressure on prices which "continues to be a challenge to profitability." Still, it noted that the improved competitiveness of its products had raised the gross margin during the period by 1.3 percentage points to 21.8%.
Rába had total assets of HUF 31.37 bln at the end of Q3, down 9% from the end of last year. Long-term liabilities fell 19% to HUF 2.65 bln.
Chairman-CEO István Pintér noted that Rábaʼs net loans had never been so low and were "well below" the level normal for the industry.
The Hungarian state owns a little under three-quarters of Rábaʼs shares.
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