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.