Borusan Mannesmann sees decline in Q1 net profit

Turkey's leading steel pipe producer Borusan Mannesmann Boru has announced its financial results for the first quarter of 2012, registering a decrease in net profit.
 
In the first quarter, the company's net profit declined by 11.6 percent to TRY 20.4 million ($11.18 million), compared to the same quarter of the previous year. Borusan Mannesmann increased its sales revenues in the first quarter this year to TRY 371.17 million ($203.4 million), up 28 percent, while its operating profit declined to TRY 20.16 million ($11.04 million), down 20 percent, both year on year.
 
In the given quarter, the company's steel pipe sales rose 12 percent year on year, reaching 186,000 metric tons. Sales of high value-added products, mainly pressure, special pipes and spiral pipes, accounted for 56 percent of total sales. Despite the increased domestic competition driven by price competition, the targeted volume growth was reached thanks to overseas sales. While OCTG sales to the US increased by 116 percent year on year, the sales volume of water and gas pipes in the domestic market remained stable compared to the first quarter of the previous year.
 
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.