On October 30, Turkey's largest steelmaking group Erdemir posted an unexpected third quarter loss of TRY 90.7 million (US$60 million), compared to a net profit of TRY 578 million in the corresponding period of 2008, due to lower sales, an increase in the cost of crude steel and a dip in production volumes.
Eregli-based Erdemir had been expected to post a net profit of TRY 74 million, according to the average of forecasts made by eight analysts in a Reuters poll.
According to a filing with the Istanbul Stock Exchange, in the period in question, the steelmaker's net sales fell by 36 percent year on year to TRY 1.3 billion, in line with expectations. During the third quarter of 2009, Erdemir's operating loss was TRY 75.3 million, compared to the operating profit of TRY 827.3 million in the third quarter of 2008.
Meanwhile, in the first nine months of 2009, Erdemir's Eregli works'crude steel production increased by 14.5 percent year on year to 2.8 million mt, while crude steel output at the producer's Iskenderun works decreased by 19.4 percent year on year to 1.8 million mt. Erdemir mainly attributed the increased output at the Eregli works to the production cut at the works in question during the installation of its new blast furnace last year.