Turkey's leading steel pipe producer Borusan Mannesmann Boru has announced its financial results for the first quarter this year, posting a net loss of TRY 7.77 million ($3.74 million), compared to a net profit of TRY 3.66 million in the corresponding quarter of the previous year. In the given quarter, Borusan Mannesmann's sales revenues improved by 21.5 percent to TRY 323.6 million ($155.5 million), while its operating profit decreased by 21.9 percent to TRY 12.1 million ($5.8 million), both year on year.
In the first three months of 2014, Borusan Mannesmann's steel pipe sales decreased slightly by 0.73 percent year on year, falling to 135,000 metric tons. Sales of high value-added products, mainly pressure pipes, special pipes and spiral pipes, accounted for 47 percent of total sales. In the same period, the company's export volume declined by 7.8 percent compared to the same quarter of 2013, due to drilling pipe sales to the US being carried out by the company's US-based subsidiary Borusan Mannesmann Pipe US Inc..
According to Borusan Mannesmann, in the first quarter its standard pipe export volume increased by 53 percent, while exports to the automotive industry increased by 13 percent, both year on year.
Borusan Mannesmann said that its US oil country tubular goods (OCTG) investment in Houston, Texas which is scheduled to become operational in the second half of 2014 will help the company to become one of the leading producers in Europe both in terms of sales volume and production capacity, as well as a Turkish producer with a production plant based in the US.