Turkey’s Borusan Mannesmann’s net profit declines in H1

Turkey's leading steel pipe producer Borusan Mannesmann Boru has announced its financial results for the second quarter and the first half of 2012.
 
In the second quarter, the company's net profit declined by 11.6 percent to TRY 15.03 million ($8.34 million), compared to the same quarter of the previous year. Borusan Mannesmann increased its sales revenues in the given quarter this year to TRY 369 million ($205 million), up 12.4 percent, while its operating profit declined to TRY 22.11 million ($12.3 million), down 18.7 percent, both year on year.
 
In the first six months, Borusan Mannesmann registered a net profit of TRY 35.48 million ($19.8 million), down 11 percent year on year. The sales revenues of the company increased by 20.1 percent to TRY 741 million ($411.5 million), while the operating profit TRY was 42.3 million ($23.5 million), down 19.07 percent, both compared to the same period of the previous year.
 
In the first half of the current year, Borusan Mannesmann's steel pipe sales rose eight percent year on year, reaching 376,000 metric tons. Sales of high value-added products, mainly pressure, special pipes and spiral pipes, accounted for 56 percent of total sales. The company increased its export volume by 25 percent compared to the corresponding period of the previous year.
 
Borusan Mannesmann stated that it has maintained its profitability thanks to tenders won regarding major projects in North Africa, the Middle East, Poland and Romania. The large diameter pipe line investment launched in Gemlik, Bursa in 2009 as a part of growth strategy for high value-added products has been completed and commissioned following performance tests.
 
Established in 1958, Borusan Mannesmann's annual steel pipe production capacity is 1,000,000 metric tons, including 800,000 metric tons of longitudinal welded pipes and 200,000 metric tons of spiral welded pipes, while its subsidiary in Vaborno, Italy can produce 28,000 metric tons per year of high value-added cold drawn pipes for the automotive industry.