Erdemir increases Q1 net profit
Turkish integrated flat steel producer Eregli Demir Celik Fabrikalari TAS (
Erdemir) have completed the first quarter with a better performance than required for the set targets and has obtained an 388% increase of Q1 net profit.
The set target for the first three months of the year was at $26 million while the actual net profit turned out to be $57 million.
The company is aiming to cut down the costs and increase efficiency, aiming at a $36.5 million cost saving, $12 million of which is already actualised. The company has also raised the
production capacity from 3.25 million tons to 3.35 million tons in line with the demand in the country. The year-end target for
production is declared as 3.5 million tons.
The
production in the first quarter increased by 26% over last year same period and reached 860'000 tons, accompanied with sales increased by 2.5% at 771'000 tons. Higher sales volumes are expected, in relation with the end of the Iraqi war that caused a gloomy outlook of worldwide economy in the first quarter.
During this period, sales income of
Erdemir increased by 65.1% at $285 million, with profit margin lifted to 20% from negative. The company performed an operating profit at $77 million.
As the company focused on the domestic market, export volume has slightly decreased, according to company officials. Despite this fact, the export revenue is reported to have increased to $47 million.