Rába: Start of strategic upgrading

The Rába Group wrapped up 2016 Q1 with more than HUF 9.5 billion consolidated sales. In the first three months of this year the company improved the competitiveness of its products and relying on its outstanding financial performance took the first steps to achieve its new strategic goals.

Rába partially set off the volatility of the markets and the effects of the cyclical sales of some of its products in the expanding European truck segment, the domestic component sale and the metal structures export. Despite the challenges the company continued to make steady profit, the group’s operating result amounted to HUF 232 million in 2016 Q1. The EBITDA, reflecting the cash generating efficiency, improving 1 percentage point reached HUF 775 million, which the two largest business units, the Axle and Component units, contributed to with a cash generating efficiency of the industry’s average or above.
The company’s net loan continued to remain low. At the end of 2016 Q1 it amounted to HUF 3.8 billion, which was HUF 2.5 billion less than the net borrowing in the base period.
„Last year was a milestone in the history of Rába: having achieved the sufficient financial leeway, developments of strategic significance could be commenced earlier than planned. Improving competitiveness and efficiency, succeeding in the markets, creating value for the stockowners – these principles guide our company in its quest to achieve its strategic goals. The first important step is the large scale modernization investment, which the AGM gave its consent to. After the implementation of the technology and capacity development program our market share and position in the global automotive industry will further strengthen, and if everything goes as planned every second or third European heavy truck will roll off the assembly lines on Rába-manufactured front axles”, emphasized István Pintér, Chairman-CEO of Rába Automotive Holding Plc.