Turkish rebar producer Izmir Demir Çelik Sanayi A.Ş. (IDC) has announced its financial results for the second quarter and first half of the current year.
In the second quarter of this year, IDC registered a net profit of TRY 50.99 million ($14.39 million), compared to a net profit of TRY 22 million in the same quarter of 2016. The company's sales revenues increased by 17.3 percent year on year to TRY 717.54 million ($202.6 million). In the given period, IDC recorded an operating profit of TRY 44.74 million ($12.63 million) compared to an operating profit of TRY 52.27 million in the same period of the previous year.
In the January-June period this year, IDC recorded a net profit of TRY 45.5 million ($12.85 million) falling by 20.2 percent from the same period of the previous year. In the first half of the current year, the company’s sales revenues amounted to TRY 1.42 billion ($401.7 million), rising 27 percent year on year, while it registered an operating profit of TRY 70.74 million ($19.98 million) compared to the operating profit of TRY 91 million in the same period of 2016.
IDC said that in the first half of this year its steel billet output decreased by three percent to 656,080 mt, while its rebar production amounted to 448,334 mt, declining by six percent, both year on year. Besides, 160,582 mt of rebar was also produced by the company's contractual partners in the given period, with a year-on-year decrease of 10 percent. During the same period, the company produced 107,958 mt of steel sections at its medium section mill, up four percent year on year.
Meanwhile, in the first half this year IDC’s finished steel sales went down by 8.1 percent to 736,035 mt, while its export sales decreased by 14 percent to 234,338 mt, both year on year.
IDC stated that in the first half of the year there was a significant increase in raw material and finished steel prices compared to the same period of the previous year, and a significant improvement was achieved in its margins. On the other hand, rising commodity prices in the international markets have increased the raw material costs of the company.