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Rába: Ft 562 million profit in Q4

Rába group closed the fourth quarter with a profit of Ft 562 million in 2005, the group announced in its Q4 report. Compared to Ft 5.1 billion for 2004, an operating loss of under Ft 2 billion for 2005 represents a distinct improvement and in the last quarter it amounted to a mere Ft 100 million.

 Rába's 2005 consolidated revenues met its target of FT 47.3 billion, up 17.9 % over the previous year. In 2005 Rába group's profits were dampened by a financial loss to the tune of FT 3.1 billion, resulting in an annual net corporate loss of FT 4.7 billion.In line with the objectives of its mid-range strategy for 2005 announced in May, in the course of the year Rába significantly improved the Company's cash flow position in each quarter. Based on Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA), starting with FT -343 million in the first quarter the Company closed the fourth quarter with a profit of FT 562 million, fulfilling its promise to produce a positive EBITDA before the end of 2005.  In 2005, Rába realised the highest group-level revenue (FT 47.3 billion) of the period since the cleaning of its business portfolio. Compared to the FT 40.2 billion reached in 2004, this represents a growth of 17.9% and matches the Company's revenue target established in its strategy for 2005.  In 2005 Rába group profits were marred by a FT 3.1 billion financial loss that translates into an annual net loss of FT 4.7 billion. The FT 3,090 million financial loss includes a profit of FT 662 million on standard future contracts and an unrealised loss of FT 3,598 million on revaluation. The mandatory revaluation on accounting date had a temporary but significant negative effect on the company's net profit figure. Of these, the effect of the revaluation on loans, as well as payable and receivable accounts came to FT – 839 million, the write-back of the evaluation of previous year's open future contracts to FT – 1,402 million and the effect of future open contracts to FT –1,357 million.