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Rába targets 5% revenue growth in 2010

Hungarian vehicle and vehicle parts maker Rába targets revenue growth of 5% at group level in 2010, and it expects EBITDA to rise by at least this much, CEO István Pintér said, a day after the company published its Q1 report.

The degree of certainty in business planning has grown from last year, but is still not as high as before the crisis, Pintér says. Planning has been made difficult by new risks -- such as the debt crisis in the eurozone -- whose effect is hard to estimate, he added.

Rába expects improving trends on export markets, Pintér said. Sales of the company's axle division in the United States grew already in the first quarter, and the pickup is expected to strengthen in Q2, he added.

Demand fell in Europe in the first quarter, but it grew on the Russian market.

Rába expects double-digit quarter-on-quarter revenue growth in Q2, and growth will “crest” in Q3, based on orders for August and September, Pintér said.

Rába made a loss at operating level in the first quarter, but financial gains gave it net profit of HUF 399 million, the company's consolidated IFRS report shows.

Revenue fell 18.4% to HUF 7.98 billion in Q1 compared to the same period a year earlier. Cost of sales fell at a slower rate, dropping 15.0% to HUF 6.30 billion to drag gross profit down 29.5% to HUF 1.58 billion. (MTI – Econews)