Rába posts growing profits and decreasing net loan in H1 2015

The EBITDA, rising by almost 14 percent and showing the efficiency of cash-flow generation, surpassed the figures of the base period in terms of sales efficiency and volume, and all other performance indicators of Rába show a profitable financial management in the first half this year, reported the company in a press release on its website.

Work at Rába's Axle unit

Export sales at Rába have started to increase in 2015 Q2 in spite of volatile prospects in the key markets. In the Vehicle Business Unit the sales of chassis structures segment generated a double digit, 13-percent, growth, and in the second quarter the Axle and Component Units also saw growing sales.

The operating profit in the first half of 2015 was HUF 1.15 billion thanks to the performance of the two biggest business units. The EBITDA exceeded HUF 2.3 billion and reached 9.4 percent on group level. In particular, the EBITDA-level of the Axle Unit showed a 13.5-percent efficiency, far exceeding the industry average.

Rába reached the lowest level of net loan in 2015 Q2 since the restructuring of the company. Via a profitable operation and a decline in working capital Rába was able to lower its net borrowing to HUF 4.8 billion, which was considerably lower than the HUF 7.5 billion a year ago and HUF 8.6 billion at the end of 2014.

“Striving to counteract the effects of volatile markets, Rába has been actively searching ways to further developing its operation. This year marks a turning point for the company: indebtedness has decreased at an unprecedented rate, which leaves us sufficient room to strengthen our position in the market.

In the context of an intensive business development, we expand and modernize our capacities, we sign new deals with strategic partners, and we explore new markets.”, István Pintér, Chairman-CEO of Rába Automotive Holding Plc, said.

Source: rába.hu