In Q3 of 2024, the Rába Group once again successfully tackled the challenges of the global economy and industry. Such flexible response, together with the latest developments, se-cured sustainable operation and development. Owing to the measures applied, optimizing production processes and increasing efficiency, the company has maintained its stable market presence and positive group-level results in Q3 of 2024 as well. Strengthening its international presence and acquiring new markets remain key strategic goals for the com-pany.
The transformation of the global automotive industry, together with the advance of electric drives and the technological progress of Asian markets open up new opportunities for Rába. Rába's coop-eration with its Turkish partner has already resulted in the establishment of a joint venture, and it has now taken strategic steps to strengthen international relations towards the Chinese market, one of the most dynamically developing automotive centres worldwide, by now a key player of the global automotive scene. Rába has signed a memorandum of understanding to explore future cooperation and joint developments with Shaanxi HanDe Axle Co., one of China’s leading axle manufacturers.
The successful continuation of the Rába Modernisation Programme, a key to maintaining Rába’s competitive edge, remains a top priority for the group. In spite of the prevailing negative economic environment and the difficulties faced by the automotive industry, to the extent financially possible, Rába pursues investments into machinery, property and sustainability promoting modernisation, as well as the enforcement of the lean principles, which provide for efficient operation and allow quick adaptation to the dynamically evolving industrial environment. A key financing element of the pro-gramme is the optimisation of the property portfolio and the sale of property element not used for production. Based on interest manifested recently in additional plots, in line with the decision of the general meeting held early November, the auction announcement of three plots in Győr’s urban area was published in the Electronic Auction System of MNV Zrt.
Q3 2024 figures show continued decline in various segments of the automotive industry, including the market of road and agricultural commercial vehicles, as well as that of passenger cars. This is not a Rába-specific, broad-based effect affecting the entire automotive industry sector, as a result of which the sales revenue declined by 47.8 per cent in the case of the Gearbox business unit and by 27.2 per cent in the case of the Axle business unit compared to the same period of the previous year.
The shareholders’ equity is 1.9 per cent below the level of the previous year. The value of equity per share was HUF 1,783 per share.
Although the group of companies has been facing challenges in terms of both customers and sup-pliers, owing to the measures introduced, cash generating efficiency has improved compared to the base period. Although group-level sales in Q3 of 2024 declined by 26.4 per cent to HUF 11.7 billion, operating profit still remained positive. Rába continues to view increasing cost effectiveness and strengthening competitiveness as its primary goal, achieved through continuous monitoring of mar-ket trends and through the dynamic optimisation of corporate operations.
“The first three quarters of the year have clearly shown that changes in the global automotive indus-try and uncertainties of the sector have a considerable impact on the operation of the Rába group. Through our strategic developments and modernisation programme, however, we can meet these challenges and build stable foundations, which secure our market position and future growth. Our steps towards the Chinese market may mean the beginning of a new era, while serving our domes-tic and international partners at a high standard remains our priority. The current market situation requires not just adapting but proactive solutions as well. Our efforts to increase efficiency and in-troduce technological innovations and conquer new markets all serve the purpose of maintaining Rába as a dominant player of the domestic and international automotive market”, emphasised Béla Hetzmann, Chairman-Chief Executive Officer of RÁBA Automotive Holding Plc.