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Rába Q2 net income up by two-thirds at HUF 125 mln

Hungarian vehicle and vehicle parts maker Raba had net income of HUF 125 million in the second quarter of 2012, 66.6% up from Q2 of 2011, as financial losses declined more than operating profits did, Raba's preliminary consolidated IFRS report published on Thursday evening shows.

Q2 net profit was under the HUF 146 million estimated by analysts polled by the financial portal

Sales revenue rose 28.1% from a year earlier to HUF 11.39 billion in the second quarter of 2012.

With losses registered in Q1, first-half net profit came to HUF 159 million, down 36.9% yr/yr. H1 sales revenue totalled HUF 21.22 billion, up 16.8% from a year earlier. Boosted partly by the weaker forint, export sales rose 31.4% to HUF 8.05 billion in Q2 and were up 21.9% at HUF 15.21 billion in H1.

Sales costs rose slightly over sales in Q2 but it was half the pace of sales growth in H1.

Administrative and general expenses rose far below sales growth, rising 1.1% yr/yr in Q2 and 2.0% in H1, the report said, noting cost cutting measures taken last year and continued tight cost management.

Gross profit rose 44.3% yr/yr in Q2 to HUF 2.16 billion and was up 30.1% at HUF 4.07 billion in H1. Rába noted that gross profit was helped by the weakening of the forint. Input prices rose slightly in Q2 but were on average 4.1% in H1 than a year earlier. Energy prices rose, however, 19.2%.

Operating profit fell 13.4% in Q2 to HUF 297 million, but was up almost 50% in a first-half comparison, rising to HUF 400 million from HUF 162 million in H1 2011. Rába noted that, in contrast with 2011, all operating profit came from operations, and every division turned out a profit.

The company had net financial losses of HUF 70 million in Q2, down almost by a third from HUF 102 million in Q2 2011. It registered HUF 179 million net financial losses in the first half of 2012, including HUF 202 million in net interest expenses and HUF 43 million in exchange rate gain, as against net financial profit of HUF 366 million one year earlier.

This year's performance was helped by no losses of associated companies as against losses registered in the base periods.

Total assets of the group stood at HUF 34.18 billion at the end of June, down 4.5% yr/yr. Equity and reserves rose 9.6% to HUF 10.95 billion. Long-term loans fell 5.6% from the end of December to HUF 7.60 billion and short-term loans fell 8.8% in six months to HUF 6.07 billion. H1 EBITDA was up 16.2% at HUF 1.48 billion.

The state of Hungary acquired a 73.7% stake in Raba in a public purchase offer ended in December 2011. The acquisition was closed in April.