Rába shareholders decide retaining all 2012 profit

The annual general meeting of Hungarian vehicle and vehicle parts maker Rába on Friday approved the management's proposal to pay no dividend and place all of last year's HUF 699 million profit in profit reserves. The state of Hungary holds 73.7% of Rába shares and 76.79% of the voting rights.  Speaking about new projects, chairman-CEO István Pintér told the meeting that Rába will produce 200-300 buses at its base in Gyor starting next year under a joint project with Volvo. Bus production will generate HUF 15 billion - HUF 20 billion annual revenue, he said. Shareholders approved the company's 2012 consolidated IFRS report showing total comprehensive income for the year of HUF 1.35 billion after a loss of HUF 350m in 2011, on revenues of HUF 42.3 billion, up from HUF 39.38 billion in 2011. Last year, Rába also put after-tax profit into reserves and did not pay dividend. The AGM unanimously reelected Pintér as member of the board of directors for another five years. The transparent operations of Rába are important for the company's international clientele, and the buyers are not interested in changing this, Pinter told the AGM when asked about an eventual delisting of Rába shares. The shares are undervalued, he said in answer to another question.