Erdemir announces TRY 685 m net profit for 2006

Erdemir Group announced its financial results for the whole of 2006 at a press conference held in Istanbul today. In 2006, the Erdemir Group produced 3,903,000 tons of flat rolled products, along with 2,100,000 tons of long products. 1,689,000 tons of total flats production was made up of cold rolled products, while the remaining 2,214,000 tons consisted of hot rolled products. In the period in question, the group's total liquid steel production amounted to 5,271,000 tons. Erdemir Group's net profit for 2006 increased by 255 percent to TRY 685 million ($482 million), compared to TRY 193 million ($136 million) recorded for last year. The group's operating profit in 2006 almost quadrupled to TRY 824.5 million ($580 million) compared to 2005. Moreover, EBITDA (earnings before interest, taxes, depreciation and amortization) in 2006 amounted to TRY 1.121 million ($789 million), up 79 percent compared to 2005. The group's net sales revenue in the subject period increased by 17 percent to TRY 4.903 million ($3.4 billion), compared to TRY 4.200 million ($2.9 billion) recorded in 2005. During 2006, total investments made in Eregli were worth $132 million, with input being made in 41 projects. Meanwhile, total investments made in Iskenderun amounted to $541 million, focused on 43 different projects. Erdemir Group recorded savings of $110 million in 2006. It was stated that the recorded savings were the result of improved productivity. Moreover, international credit ratings agency Standard and Poor's (S&P) increased the long-term corporate credit rating for OYAK to “BB”. This rate is higher than Turkey's current credit rating of “BB-”. As previously reported by SteelOrbis, Isdemir carried out its first casting at its No.1 Slab casting mill - which has an annual capacity of 2.5 million tons - in early November. Equipment manufacture and construction work are continuing for the company's No.2 Slab casting mill, which will have the same capacity. Moreover, the 3.5 million ton-capacity hot rolling mill is scheduled to become operational in 2008. At today's Istanbul press conference, the group stated that the total flat rolled capacity of the group is planned to be increased to around eight million tons by 2008 by means of the ongoing investments. Moreover, it was hinted at the conference that the group's investments after 2008 may be in raw materials.