Positive and stable operating cash-flow is headline target despite crisis

The economic climate of the global markets, where Rába operates, was clearly defined by the crisis caused by the COVID-19 pandemic in Q2 2020. The customers’ production ceased, orders were drastically cut back, and production and sale volumes decreased resulting from the drop in demand. With the cautious optimism expressed socially the economic outlook remains uncertain, and it’s all but impossible to estimate the qualitative and quantitative changes that might influence demand on the key markets of the company in the near future.

To offset the drop in order volume Rába has introduced measures designed to help the company’s operation adapt to the changed operating environment. Such measures include the improvement of manufacturing flexibility, the consolidation of capacities, the retainment of operational efficiency and working capital turnover ratio, and the reduction of administrative and sale costs.

On a positive note, Rába entered the crisis caused by the pandemic from a relatively comfortable position as, besides a sound financial situation, the HUF 10 bln technology upgrade programme approved by the shareholders in 2016 has just been completed. Over the past few weeks, in the midst of the crisis, the new capacity has been fully integrated into the production processes, and Rába now serves its customers with world-class quality. Positive customer reception confirms that the company’s strategic interest lies in the pursuit of innovation and the development of key capacities in order to further reinforce Rába’s market positions and competitiveness.


“Rába has experienced several crises over the past decades, and each and every time has found the right answers, and introduced measures that ensured the company strengthened, and took advantage of the new opportunities created by the consolidation. An important feature of our strategy, developed last year, is “to escape forward”, which has proven to be crucial in the new situation. It is our intention to build the company’s future by innovation, by continuing the key product and technology development programmes, by exploring further acquisition opportunities, and by exploiting the potential of the supply chains expected by experts to shorten and shift. In order to achieve this we need to ensure the stable operation of the company even in this market situation. Unless a second wave of the pandemic further deepens the crisis this year’s headline targets are the positive and stable operating cash-flow, and the restoration of profitability in H2.” – said István Pintér, Chairman-CEO of RÁBA Automotive Holding Plc.