Raba Jarmuipari Nyrt : Markedly decreasing net loan, solid profitability

In line with its business development strategy Rába increased its export sales in Europe and the CIS countries in the commercial vehicle and chassis structure market segments in the first six months of 2016. The Axle business strengthened its position in the Japanese commercial vehicle market. Meanwhile the Component business contributed to offsetting the volatility of markets by adding to its domestic sale. The group maintained its operating profitability despite a decline in sales revenue: the operating income was HUF 783 million in 2016 H1. The EBITDA level, reflecting the cash generating ability, was 9.1 percent in the first half of 2016, thus maintaining an efficiency corresponding to the industry's average. As far as Q2 is concerned, the EBITDA exceeded the industry's average reaching 9.9 percent.
In the first half of 2016 Rába managed to further decrease its net loan that had already been at a record low in 2015 Q4. The net borrowing of HUF 2.1 million in 2016 Q2 was the result of continuing profitability and a strict equity management.
'The achievement of our financial independence enabled us to introduce a strategic shift in our focus at the end of 2015, whose most important part is perhaps the technology development program started this past spring. The investment increasing the competitiveness of our axle production is progressing according to plan; its financial basis is supported by our continuing, outstanding cash-flow generation. In the meantime Rába also attaches great importance to intensive business development. We enhance cooperation with our strategic partners, and strengthen our international market positions with new agreements and products', noted István Pintér, Chairman-CEO of Rába Automotive Holding Plc.

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