The Győr-based Rába Group in the first three quarters of the year realized sales revenues of HUF45.3 billion, which is 9.1% higher than in the corresponding period of the previous year. Although the Group’s operating profit in the respective period decreased from HUF550 million to HUF408 million, as a result of the hedging transactions successfully counteracting the effects of the currency rate, the Group realized a net profit of HUF1.61 billion in the first nine months of the year as opposed to HUF725 million registered a year ago. The Group maintains its forecasts for the end of 2008, according to which sales revenue of HUF60 billion – together with the realized hedging transactions – is expected to reach an EBITDA level of HUF5.5 billion.

In Q3, Rába still had to operate in a very adverse industrial climate. The high energy and raw material costs as well as the strong forint until September exerted very unfavorable effects on the Group’s revenues and profitability. The traditionally weaker third quarter, however, due to the increase in the supplies of axles and vehicles – highly expected in the light of the volume of orders – and due to the recent favorable change in foreign currency rates is likely to be followed by a stronger Q4, in accordance with previous plans.

In the first nine months of the year, the Group realized sales revenues of USD86.3 million in the American market, 47% higher than in the previous year. It was due to the fact that despite a general decline, the Group managed to keep its volume of supplies to this particular market high thanks to its sales of special axles. Exports to the EU were up by almost 20% (EUR43.3 million). Besides stagnating domestic sales (HUF15.3 million), sales to Eastern Europe (EUR17.2 million) making up for almost tenth of sales revenues were 11.3% down from the previous year. 

In the first three quarters (despite the decline experienced in the last quarter), all three business units of Rába were profitable. The Axle business unit increased its sales revenues by 13.5% to HUF29.5 billion, the Component business unit by 4% to HUF12.9 billion. The business turnover of the Vehicle business unit reached HUF4.9 billion.

The effects of the recession transcending in the automotive industry – due to a decrease in orders – generated by the economic crisis in the wake of the financial crisis is expected to influence Rába’s operations unfavorably too. However, the thorough efficiency improving measures implemented in the previous years as well as the more diversified market portfolio of the Group and its decreased credit stock will assure the necessary resilience and reserves for the Group to mitigate these effects. 

 „Rába, by the end of the year, will meet its target operating figures that investors earlier found underestimated, yet, recently overestimated.”, says István Pintér, Rába’s CEO-Chairman. „Our operation as well as our capital expenditure planned for this period will be flexibly adjusted to the market so that the Group could end the year of 2009 also with the best results achievable.”

Consolidated results for Q1-Q3 2008 (in compliance with IFRS):

*EBITDA with realized hedge: HUF 4,315 million