Turkey's leading steel pipe producer Borusan Mannesmann Boru has announced its financial results for the second quarter and the first half of 2013.
In the second quarter, the company's net profit declined by 77.8 percent to TRY 3.33 million ($1.67 million), compared to the corresponding quarter of the previous year. Borusan Mannesmann's sales revenues in the given quarter amounted to TRY 250.2 million ($125.6 million), down 32.2 percent, while its operating profit declined to TRY 3.41 million ($1.71 million), down 86.6 percent, both year on year.
During the first half, Borusan Mannesmann registered a net profit of TRY 7.05 million ($3.5 million), falling 80 percent year on year. In the given period, the company's sales revenues decreased by 29.7 percent year on year to TRY 520.9 million ($261.5 million), mainly due to the change in the US sales channel, the ongoing economic instability in Europe and weak demand. Borusan Mannesmann's operating profit amounted to TRY 18.9 million ($9.5 million), decreasing by 60.7 percent compared to the same period of 2012.
In the first six months, Borusan Mannesmann's steel pipe sales decreased by 28.2 percent year on year, falling to 270,000 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 44.3 percent compared to the first half of 2012, accounting for 49 percent of the total business volume.
According to Borusan Mannesmann, in the first half of the current year the company's domestic sales increased by six percent, while high value-added products such as water and natural gas pipes improved by 12 percent, both year on year. Drilling pipe exports to the US declined since the sales are now being carried out by the company's subsidiary Borusan Mannesmann Pipe US Inc.
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.