PRESS NEWS
2019.11.13
Profitable operation on volatile markets

Consolidated sales of Rába Group reached nearly HUF 38 billion in the first nine months of 2019, registering a 9.3 percent increase compared to the base period of 2018. The company boasted a profitable operation in 2019 Q1-Q3 by implementing significantly flexible and maximally customer-driven manufacturing.

Rába Group reached HUF 1.19 billion operating profit in 2019 Q1-Q3, with all three business units of the group having contributed to the positive figure. The HUF 2.7 billion of the generated EBIDTA profit, which is nearly 5 percent higher than that of the base period, signals that Rába maintained its efficiency despite the rising labour and energy costs, and the fluctuating market demand. The European heavy truck market reacted with a slowdown to the tightening of legislation, the global agrimachinery and Russian truck segments also showed decreased demand, while buses continued to sell well in Russia. Another factor significantly affecting Rába’s business is that the purchases due in 2019 based on the new framework contract, signed in 2018, with the Ministry of Defence will not be ordered, thus revenue from them cannot be anticipated this year.

Rába Group retained its solid liquidity position in the first nine months of 2019. As a result of the profitable and efficient operation, the company’s shareholders’ equity increased by 3.7 percent compared to the base period.

ˮThe basis of our business policy and the token of maintaining our market positions is the flexible and customer-driven management of our manufacturing capacity and product portfolio. Moreover, based on our internationally acknowledged competence and soon fully available modernized production technology we strive to compensate for the once again discernible volatility of the markets by building new businesses.” – said István Pintér, Chairman-CEO of Rába Automotive Holding Plc.