Rába profit plunges as vehicle business sales slow in Q1
Hungarian automotive industry company Rábaʼs first-quarter after-tax profit plunged 84% year-on-year to HUF 110 million, hit by a big drop in sales of its vehicle business, an earnings report released early today shows, according to Hungarian news agency MTI.
Revenue was down 31% at HUF 9.6 billion. Sales of the vehicle business slipped 74% to HUF 1.2 bln, but turnover of the axle business dropped just 13% to HUF 5.2 bln.
Exports generated 72% of revenue.
Rába noted that sales in the vehicle business were “characterized by a cyclicality different from the base period”.
While the businessʼ exports to European markets rose 3% to €3 mln, domestic sales fell 92% to HUF 293 mln, it added.
In the base period, Rába won a HUF 5 bln contract to supply chassis for emergency services vehicles to state-owned BM HEROS, according to earlier reports.
Direct cost of sales was down 35% at HUF 7.5 bln.
Gross profit fell 91% to HUF 2.1 bln.
Rábaʼs operating profit fell 42% to HUF 232 mln.
István Pintér, the companyʼs chairman-CEO, said a HUF 10.5 bln technology development program approved by shareholders at an annual general meeting in April would “further strengthen” Rábaʼs position on the global automotive industry market.
“If everything goes as planned, every second or third European heavy truck will roll off the assembly lines on Rába-manufactured front axles,” he said.
The state holds a 74.4% stake in Rába.
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