Growing sales revenue, ongoing modernization

The Rába Group closed 2018 Q3 with consolidated sales of HUF 34.7 billion, which is a 12.5 percent increase in sales compared to the base period. The strategic investment program of the company soon reaches the next milestone, the testing of the new production line is expected to start before the year is out.

Rába’s sales revenue got a boost from the active demand on the important markets in the first nine months of 2018. The heavy truck market significantly grew in Europe, which is the key segment, and in North America; the global agricultural vehicle market showed increased activity, and the Russian segments did well, too.

Rába retained its productivity in 2018 Q3, the group level operating profit amounted to almost HUF 1.1 billion, which corresponds to a HUF 5 million increase compared to last year. The continued cash generating ability of the company is manifest in the fact that Rába maintained the efficiency on sales level close to the industry’s average despite a substantial rise in the prices of raw materials. The EBITDA profit exceeded last year’s result by 2.7 percent, reaching more than HUF 2.6 billion. All business units of the group contributed to the figures with positive EBITDA and operating profits.

As a result of the profitable and efficient operation, the company’s shareholders’ equity increased by 6.1 per cent compared to the base period.

"While welcoming the increased activity on the key markets, the price hike of the raw materials has required a constant, up-to-date adaptability on the part of our company. Our financial situation is solid, and our manufacturing capacity and flexibility will increase as a result of the technology development investment program being concluded partly this year, partly next year. This will create the conditions for further growth and improved competitiveness. We will be able to meet the increasing demands of our international customers in higher quality and in greater volumes, in longer, strategic cooperations as well as in specific business deals." – said István Pintér, Chairman-CEO of Rába Automotive Holding Plc.