Turkey’s Borusan Mannesmann sees improved exports in Q3

Turkey's leading steel pipe producer Borusan Mannesmann Boru has announced its financial results for the third quarter and the first nine months of 2012.
 
In the third quarter, the company's net profit declined by 75.7 percent to TRY 1.37 million ($760,742), compared to the same quarter of the previous year. Borusan Mannesmann increased its sales revenues in the given quarter this year to TRY 320.44 million ($177.8 million), up 7.3 percent, while its operating profit declined to TRY 4.67 million ($2.6 million), down 72.7 percent, both year on year.
 
In the first nine months, Borusan Mannesmann registered a net profit of TRY 36.8 million ($20.45 million), down 21.5 percent year on year. The sales revenues of the company increased by 13.3 percent to TRY 1.06 billion ($589.2 million), while the operating profit was TRY 47.01 million ($26.1 million), down 34 percent, both compared to the same period of the previous year.
 
In January-September of the current year, Borusan Mannesmann's steel pipe sales rose six percent year on year, reaching 540,000 metric tons. Sales of high value-added products, mainly pressure, special pipes and spiral pipes, accounted for 56 percent of total sales. In the third quarter of 2012, the company increased its export volume by 21 percent compared to the corresponding period of the previous year.
 
The company stated that the export potential of Borusan Mannesmann gives the company a competitive edge considering the shrinking domestic demand. In the first nine months, exports accounted for 64 percent of the company's total sales. Borusan Mannesmann exports to over 40 countries in North America, North Africa, Europe and the Middle East.
 
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.