Turkey-based steel pipe producer Borusan Mannesmann Boru has announced its financial results for the first quarter of the current year. In the period in question, Borusan Mannesmann achieved a net profit of TRY 13.6 million ($2.54 million), compared to a net profit of TRY 12.11 million in the first quarter of 2018, while the company’s sales revenues amounted to TRY 1.15 billion ($214.3 million), rising by 60.8 percent year on year.
In the given period, premium quality product sales of the company amounted to 164,000 mt. In the same period, sales of premium quality products in the exports markets increased by 13 percent year on year to 115,000, accounting for 70 percent in total sales volume. Sales of high value-added drilling pipes increased by 18 percent, sales of sales of high value-added spirally welded pipes increased by six percent and sales of standard pipe rose by two percent, all year on year.
Borusan Mannesmann said that it aims to maintain its position as the leader in high value-added steel pipes for the automotive industry in 2019 as well. In line with the contraction in the Turkish automotive industry, the loss in the company’s sales to the automotive industry in the first quarter remained limited; however, the slowing down of the EU automotive market raises concerns for the coming period, the company said.
According to Borusan Mannesmann, the spirally welded pipe market is having a hard time because of protectionist measures despite strong demand in the US market. Meanwhile, the 50 percent duty on Turkish imports in the US and the 25 pecent tarif quota rate in the EU hamper the company’s exports.