Exploitation of new market opportunities and developments point the way

RÁBA Plc. closed the first three months of 2020 with a consolidated sales revenue of HUF 11.8 billion. This year, when business predictions are difficult to make, Rába concentrates on cash-flow, and strives to improve operational efficiency and exploit newly arising market opportunities.

Rába operated on changed key markets in the first three months of the year. There was decreased activity in the global truck and agrimachinery segments, as well as on the European passenger car market that had started in the second half of last year. In contrast Rába realized a 29 percent growth in sales on the Russian bus market in the first quarter. In March the coronavirus pandemic already had an impact in terms of a drop in demand and an increased global economic uncertainty.

The Axle and Components business units successfully overcame the economic and industry slowdown, both units earned operational and EBITDA level profits. The results of the Vehicle business unit were vitally determined by the ceased sale of military vehicles, thus the figures of the current and the base periods are difficult to compare. Rába intends to create the conditions of a profitable operation without the military sales at the Vehicle business unit. The necessary restructuring is already being carried out.

The consolidation of the companies of Rekard Group purchased last year, and the integration of resources and manufacturing have been progressing more rapidly than initially planned. The exploitation of industry sinergies is already reflected in the results, and in light of the epidemic Rába has sped up the integration of the two groups and increased the cooperation to strengthen the market positions of the company. 

"The 2020 business year has posed unexpected challenges to our company as we have to manage the general global economic slowdown, and the decrease in market activity due to the COVID-19  pandemic to boot. Thus the forecast is subject to uncertainty, however Rába keeps its focus on generating cash-flow and the structural reduction of operational costs in 2020. It is our resolute intention to exploit the opportunities of the global supply chains expected to shift due to the crisis. Despite the crisis we will continue to carry out our R&D developments and modernization programs, we will speed up the Industry 4.0 projects, and consider further company- and asset-based acquisition opportunities." - said István Pintér, Chairman-CEO of RÁBA Automotive Holding Plc.