HUNGARY: Raba posts profit up 52% in Q1
Parts maker Raba has reported a strong first quarter including EBITDA up 52%, but kept its full-year revenue and core profit targets unchanged.
Raba continues to expect full-year revenue to rise to 60 billion forints from 58 billion in 2007 and still sees earnings before interest, taxes, depreciation and amortisation (EBITDA) rising to 5 billion from 3.7 billion in 2007, Chairman and Chief Executive Istvan Pinter said on Thursday.
"Our first quarter was strong but I would warn everybody against multiplying the first quarter figures by four to get the full-year results," Pinter told a news conference. "There are one-offs and usual factors that make the second half more difficult."
Reuters reported that Pinter added that production shutdowns in the third and fourth quarters, which are usual in the industry, will lower its rate of profit growth, while the persistent weakening of the dollar will make a dent in the company's earnings as its exposure to the US market is expanding rapidly.
In the first quarter, revenue rose by 28% to 16.8 billion forints and EBITDA grew by 52% to 1.36 billion, Raba said.
"The predictability in of the business has declined significantly due to the global economic turbulence," Pinter told Reuters on the sidelines of the news conference.
"The U.S. economy's fortunes makes a big impact on the global economy and it's clear that the U.S. is in trouble, even if we don't yet know how big of a trouble," Pinter added.