Borusan Mannesmann’s net profit declines in Q1

Turkey's leading steel pipe producer Borusan Mannesmann Boru has announced its financial results for the first quarter of 2013.
 
In the first quarter, the company's net profit declined by 81.8 percent to TRY 3.7 million ($2 million), compared to the corresponding quarter of the previous year. Borusan Mannesmann's sales revenues in the given quarter amounted to TRY 266.35 million ($144.65 million), down 28.2 percent, while its operating profit declined to TRY 11.57 million ($6.28 million), down 42.6 percent, both year on year.
  
In the first three months, Borusan Mannesmann's steel pipe sales decreased by 27 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 50 percent of total sales. In the same period, the company's export volume declined by 41 percent compared to the first quarter of 2012, accounting for 54 percent of the total business volume.
 
According to Borusan Mannesmann, the company exported 27,100 mt of large diameter pipes for worldwide projects in the first quarter of the current year. The company produced 20,900 mt of large diameter welded pipes at its Gemlik, northwestern Turkey-based spirally welded pipe facility with an annual production capacity of 250,000 mt commissioned in 2012.
 
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 pipes for the automotive industry.