Erdemir reported $193 million net profit in the first 9 months of 2003

Erdemir reported $193 million net profit in the first 9 months of 2003

According to latest statistics released from Erdemir, the company has reported a net profit of $193 million ( TL 291.9 trillion) in the first nine months of 2003, against the net loss of $82 million (TL 121.1 trillion) recorded in the same period last year. Again in the same period, net sales amounted to $909 million with an increase by 51% when compared to $603 million recorded last year. Sales volume also grew by 4% to 2.5 million tons, mainly due to increase by 24% in cold rolled steel and tinplate sales. The biggest increase is recorded in operating profit of Erdemir. The figure, which was recorded as $10 million in the first nine months of 2002, reached up to $170 million in the same period this year. Financial expenses of the company declined to $14 million from $119 million. EBITDA figures also indicated an increase. The figure recorded as $51 million in the first nine months of 2002, has become about $225 million in the same period this year. It is stated that, these figures are mostly related with the increase in steel prices. Price increase in hot rolled steel was 27%, while in cold rolled 37% in the first nine months of 2003. It is stated that, the increase in prices are emanating from the unabated steel demand in China. The expectation that the prices of steel in 2003 will follow a downward trend did not materialize. Moreover, it is forecasted that the situation will not change in 2004. When the statistics about debt levels of Erdemir is examined, it is observed that the company reduced its debts from $285 million reported in the first half of 2003 to $264 million at the end of September.