Turkey's largest steelmaking group Eregli Demir ve Celik Fabrikalari TAS (Erdemir) has posted its financial and operational results for 2010, stating that it recorded a full-year net profit of TRY 796.35 million ($502.41 million) on the back of increased local flat steel shipments which were up 13 percent on year-on-year basis.
According to the consolidated financial results issued on March 14, Erdemir announced a net profit of TRY 796.35 million in 2010, compared to a net loss of TRY 168.48 million in 2009, while its sales revenues increased 25.8 percent year on year to TRY 6.63 billion ($4.19 billion). Meanwhile, the company's net profit margin increased to 16.9 percent from over one percent in 2009.
5.1 million mt of flat steel sales
Turning to operational results, in 2010 crude steel production at Erdemir's Eregli works dropped by 4.7 percent from 2009 to 3.5 million mt, while crude steel output at the producer's Iskenderun works rose by 30 percent year on year to 3.6 million mt. Erdemir said that it utilized full liquid steel production capacities at both its steelmaking plants during the year.
The company said that it raised its local flat steel sales by 13 percent year on year to 4.4 million mt and saw a 0.7 percent increase in total sales which reached 5.1 million mt in 2010. Erdemir said that, despite the growth in local sales, its 2010 flat steel market share was only at the level of 35 percent as a result of the 43.1 percent surge in steel consumption over 2009.
Long steel shipments decrease
Meanwhile, Erdemir's aggregate long steel shipments in 2010 fell 25 percent year on year to 1.4 million mt. The market share of the sales in this segment, however, stayed flat compared to the year before, as the Turkish billet market shrunk significantly in 2010.
Last year, the Eregli works' finished steel output totaled 3.41 million metric tons while the Isdemir works' output amounted to 3.48 million metric tons, compared to 3.99 million mt and 2.81 million mt in 2009. Meanwhile, Erdemir's mining subsidiary Ermaden produced 2.71 million mt of iron ore and pellets in 2010.
Erdemir produces iron ore, pellet, pig iron, slab, billet, rebar, tin plate, galvanized, hot and cold rolled sheet.