Borusan Mannesmann’s sales increase in volume, drop in value

Turkey's leading steel pipe producer Borusan Mannesmann Boru registered a loss of TRY 785,684 (approx. $523,000) in the first quarter of 2010, compared to a loss of TRY 5.79 million in Q1 2009. The company's net sales revenues regressed by 2.81 percent year on year to TRY 196.69 million ($131.01 million).
 
In the quarter in question, the company's steel pipe sales rose 14 percent year on year, reaching 165,000 metric tons, thanks to the improving demand situation in the domestic market and to its focus on new markets and products in order to minimize the adverse effects of stagnant foreign demand. Due to the measures taken, the decline in the share of exports in total sales was limited to seven percentage points, with the share of exports standing at 42 percent.
 
In the first three months of this year, Borusan Mannesmann's steel pipe output totaled 165,000 metric tons, increasing by 34 percent year on 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 of high value-added cold drawn pipe for the automotive industry, primarily in Italy, Germany, Spain and in France.