Another profitable business year

Rába Group increased its sales revenue by 2.4 percent compared to the base period, and the consolidated income amounted to almost HUF 50 billion in 2019 Q1-Q4. The company reached important milestones in its history in 2019: it strengthened its manufacturing competence and product portfolio by acquisition; after successfully concluding the test run serial production started on the new forging line, which is going to become Europe’s most modern and integrated production line in the front axle segment after the ancillary capacities become operational this year.

Rába followed the volatile dynamics of its key markets by flexible operation last year. The Russian bus, and European passenger car markets experienced recovery throughout the year, while the truck and agrimachinery segments were characterized by dwindling demand. Another factor significantly affecting Rába’s business was that the purchases due in 2019 based on the framework contract of 2018 with the Ministry of Defence had not been ordered.

All business units of Rába Group generated operative profits in 2019, the group level profit reached HUF 1.34 billion. In terms of cash generating efficiency the company realized an EBITDA profit of HUF 3.45 billion which corresponds to a 6.9 percent level of efficiency on sales with all three business units contributing to the figures with profits.

Rába Group retained its solid liquidity position in 2019. As a result of the profitable operation, the company’s shareholders’ equity increased by 1.6 percent compared to the base period.

ˮThe volatility of the markets posed a challenge to our company. In a situation like this even more emphasis was, and is going to be, placed on our traditional strengths: flexibility, continuous modernization, market and product diversification, and efficiency improvement, which are greatly supported by the capacity and technology development program concluded last year. We trust that by increasing our competitiveness we will remain reliable and innovative partners to the global automotive industry in the long run.” – said István Pintér, Chairman-CEO of Rába Automotive Holding Plc.