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Financial profit lifts Rába from red in Q1

Hungarian vehicle and vehicle parts maker Rába had net income of HUF 177 million in Q1 as financial profit lifted the bottom line out of the red, the company's consolidated IFRS report published Monday shows.

Net income was down 55.5% from the same period a year earlier.

Revenue climbed 17.4% to HUF 9.26 billion. Exports were up 44.8% at HUF 6.35 billion but domestic sales slipped 16.8% to HUF 2.91 billion.

Direct cost of sales rose at a faster rate than revenue, increasing 21.0% to HUF 7.63 billion. Gross profit inched up 3.2% to HUF 1.64 billion.

General and administrative costs of HUF 1.73 billion ate up gross profit, even though they edged down 3.7%.

Rába had a HUF 180 million loss at operating level, but the bottom line was lifted by HUF 468 million in financial profit.

Rába chairman and CEO István Pintér called 2011 the "year of strategic projects". "Thanks to new development projects in the framework of the Rába Development Institute, the market launch of new product is in the plans. With this we aim to establish balanced growth on a stable customer base," he said.

Pintér also said the company hopes to enter the Western European passenger carmaker market as a supplier in the second half of 2011.