HungaryTrends – Business and financial news from the previous week

Budapest (MTI) – See below MTI’s main business and financial news from the previous week:

CONSTRUCTION SECTOR OUTPUT JUMPS 18.5PC IN JAN

Hungary’s construction sector output climbed 18.5 percent year-on-year in January after falling for twelve months in a row, data released by the Central Statistical Office (KSH) showed. The big increase was supported by improved absorption of European Union funding as well as the government’s home subsidy scheme (CSOK) for families with children, economy minister Mihaly Varga said.

AUDI HUNGARIA REVENUE FALLS ON MODEL CHANGEOVER, EXTERNAL FACTORS

Revenue of the local unit of German carmaker Audi fell about 10 percent to 7.136 billion euros last year because of a model changeover and external factors, Audi Hungaria chairman Peter Kossler said at a press conference at Audi headquarters in Ingolstadt. Audi Hungaria will start serial production of the next-generation Q3 next year, at an 80,000sqm plant it is building in Gyor (NW Hungary).

MOL BOARD PROPOSES HUF 625-PER-SHARE DIVIDEND

The board of Hungarian oil and gas company MOL decided to propose to shareholders payment of a HUF 625-per-share dividend on last year’s earnings at an annual general meeting on April 13. The dividend is 10pc over the HUF 567-per-share one paid on 2015 earnings, the board noted. The dividend will come to 58 billion forints (EUR187.92m).

GLAXOSMITHKLINE TO INVEST HUF 18BN AT VACCINE PLANT NEAR BUDAPEST

Drugmaker GlaxoSmithKline (GSK) said it will invest 18 billion forints (EUR 58,33m) in a capacity expansion at its vaccine plant near Budapest, creating more than 100 jobs. The government is supporting the expansion with a 1.8 billion forint grant.

PROVISIONS RELEASE LIFT RBI PROFIT IN HUNGARY

Raiffeisen Bank International (RBI) booked after-tax profit of 53 million euros at its business in Hungary last year, up 189 percent from 2015, an earnings report showed. Profits were lifted by a 7 million euros release of provisions. In the base period, RBI built up provisions of 56 million euros at the business.

AUTOMOTIVE SECTOR OUTPUT CLIMBS 8.2PC IN JAN

Output of Hungary’s automotive sector, a key driver of industry in the country, rose 8.2 percent year-on-year in January, a detailed reading of data released by the Central Statistical Office (KSH) showed. Headline industrial output was up 6.5 percent, KSH confirmed.

ELRINGKLINGER TO BUILD EUR 21M PLANT IN HUNGARY

German automotive industry supplier ElringKlinger will build a EUR 21m plant in Kecskemet (C Hungary), creating 700 jobs over several years, CFO Thomas Jessulat announced. Serial production of thermal shielding systems at the 10,000sqm plant will start at the end of 2017.

DUNA HOUSE TO BUY OUT ELDAR INVESTMENTS FROM JV FOR EUR 2.2M

Hungarian property broker Duna House said it signed a contract to buy out Eldar Investments’ 50 percent stake in the companies’ joint venture MyCity for 2.2 million euros. MyCity has four residential projects under development in the capital.

GOVT PUTS MORE THAN EUR 1M INTO NATL STAND AT CEBIT

Hungary’s government is supporting local companies’ presence at this year’s CeBIT technology fair in Hannover with 340 million forints (EUR1.1m), the commissioner for the coordinator of the national stand at the trade show said. Twenty-one Hungarian companies are showing at CeBIT which takes place on March 20-24.

KONZUM PRIVATE EQUITY MAKES BUYOUT OFFER FOR OPIMUS AT HUF 45 PER SHARE

Konzum Private Equity, a member of the investor Gellért Jaszái’s Konzum group, made a buyout offer for holding company Opimus at a price of 45.38 forints (EUR 0.147) per share, the statutory minimum. A group of Opimus shareholders acting in concert said earlier that Konzum Private Equity would make the buyout offer but did not name a price.

Source: MTI