Erdemir increases profit and sales in Q1

Monday, 09 May 2011 14:52:37 (GMT+3)   |  
       

Turkey's largest steelmaking group Eregli Demir ve Celik Fabrikalari TAS (Erdemir) has posted its financial and operational results for the first quarter of 2011, stating that it recorded a quarterly profit of TRY 260.42 million ($169.07 million), compared to a profit of TRY 160.71 million in the corresponding period of the previous year.

According to the consolidated financial results issued on May 6, Erdemir's sales revenues increased 28 percent year on year to TRY 2.03 billion ($1.32 billion) in the given quarter, while the company's EBIDTA margin increased to 21.7 percent from over 18.3 percent in Q1 2010.

Capacity usage increases for almost all products

Turning to operational results, in Q1 2011 crude steel production at Erdemir's Eregli works dropped by 10 percent from Q1 2010 to 796,341 mt, while crude steel output at the producer's Iskenderun works rose by four percent year on year to 993,366 mt.

Erdemir said that it increased its capacity usage rate to 96 percent in tin plate production from 75 percent, to 119 percent in galvanized coil production from 65 percent, to 84 percent in cold rolled coil (CRC) production from 67 percent, and to 46 percent in steel plate production from seven percent, while its capacity usage dropped to 68 percent in hot rolled coil production from 74 percent, all compared to Q1 2010.

The company said that its finished steel sales from Eregli steelworks amounted to 872,000 mt in the first quarter this year, rising by five percent, while its finished steel sales from Isdemir works totaled 931,000 mt, up by eight percent.

Erdemir produces iron ore, pellet, pig iron, slab, billet, rebar, tin plate, galvanized, hot and cold rolled sheet.


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