Borusan Mannesmann posts another loss in Q2 despite increased sales

Turkey's leading steel pipe producer Borusan Mannesmann Boru registered a loss of TRY 2 million ($1.32 million) in the second quarter of this year, compared to a loss of TRY 797,280 in the first quarter of this year and a profit of TRY 9.05 million in the corresponding period of the previous year. In the April-June period of this year, the company increased its sales revenues by 22.52 percent quarter on quarter to TRY 240.99 million ($158.46 million), up 24.57 percent year on year.
 
Meanwhile, in the first half of this year Borusan Mannesmann's loss amounted to
TRY 2.81 million ($1.85 million) compared to a profit of TRY 3.93 million in H1 2009, while the company's net sales revenues increased by 12.55 percent year on year to TRY 439.65 million ($289.09 million).
 
In the first half of this year, the company's steel pipe sales rose 17 percent year on year, reaching 357,000 metric tons, thanks to its focus on new markets and products to offset the adverse effect of stagnancy in the export markets. Borusan Mannesmann also said that domestic sales showed some improvement in the period in question compared to the year-ago period; however, in the second quarter of this year steel pipe prices started to regress, in line with decreasing steel prices. The company took advantage of increased activity in the US drilling pipe market, and managed to increase its sales volume in this market, selling all its capacity available until the end of this year.
 
In the first six months of this year, Borusan Mannesmann's steel pipe output totaled 332,000 metric tons, increasing by 18 percent year on year.
 
Established in 1958, Borusan Mannesmann's annual steel pipe production capacity is 1,000,000 metric tons, including 800,000 metric tons of longitudinal welded pipes and 200,000 metric tons of spiral welded pipes, while its subsidiary in Vaborno, Italy can produce 28,000 metric tons per year of high value-added cold drawn pipe for the automotive industry, primarily in Italy, Germany, Spain and in France.