Rába issues warning on results – BBJ
MTI – Econews
Saturday, April 23, 2022, 2:00 p.m.
Listed automobile industry company Raba said on Wednesday evening that it could report a consolidated operating loss in the first quarter of “almost 500 million HUF”, mainly due to the impact of the increase “drastic” energy prices on its energy-intensive axle business, according to a report by state newswire MTI.
Rába said the war in Ukraine has helped keep energy prices high.
To mitigate the impact on its business, Rába said it responded “by increasing production flexibility and introducing strict cost management measures” and is now focusing on “improving the efficiency of production processes and… technology”.
Passing on a “quadruple quintuple” increase in energy prices to customers is “a big challenge”, he added.
Rába made an after-tax profit of HUF 1.3 billion in 2021, improving from a loss of HUF 1 billion in 2020, supported by the sale of real estate and a narrower financial loss.
The company will release its first quarter results on May 18.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing decent journalism is an expensive business. For 27 years, the editors, editors and reporters of Budapest Business Journal have strived to bring you business news that works, information you can trust, that is factual, accurate and presented without fear or favour.
News organizations around the world are struggling to find a business model that allows them to continue to excel, without compromising their ability to perform. More recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer this same opportunity to our readers. We would like to invite you to help us provide the quality business journalism you need. Hit our Support the BBJ button and you’ll be able to choose how much and how often you send us your contributions.