Hungarian vehicle parts maker Rába swung to a net profit of HUF 876 million in the last quarter of 2009 due to cost cuts and recovery in its markets after a year of heavy losses.
Its earnings report still showed a loss of HUF 670 million for the whole of 2009, though that compares with a loss of HUF 5.098 billion in 2008. The company did not disclose sales or earnings targets.
Net sales plunged 58% last year to HUF 33.9 billion, slightly below the HUF 35 billion forint target, as recession hit its markets in the US, Europe and Hungary.
Cost-cutting helped it post an operating profit of HUF 746 million last year despite the big fall in sales, though the profit fell from HUF 1.109 billion in 2008. Foreign currency hedging deals caused a huge loss to the company late in 2008. But in the fourth quarter of 2009 Rába posted a HUF 495 million forint net financial profit, cutting the full-year net financial loss to HUF 220 million from a HUF 6.288 billion forint loss in 2008. (Reuters)