Turkish rebar producer Izmir Demir Çelik Sanayi A.Ş. (IDC) has announced its financial results for 2019.
In the given year, IDC registered a net loss of TRY 528.81 million ($86.76 million), compared to a net loss of TRY 362 million in 2018. In the same year, the company's sales revenues decreased by 12 percent year on year to TRY 4.12 billion ($675.5 million). IDC recorded an operating loss of TRY 158.39 million ($25.3 million) in 2019, compared to an operating profit of TRY 784,355 in the previous year.
According to the report released by IDC, in 2019 the company’s steel billet output decreased by three percent to 1.2 million mt, while its rebar production totaled 853,663 mt, falling by 13 percent, both year on year. Besides, 136,598 mt of rebar was also produced by the company's contractual partners in the given period, with a year-on-year decrease of 56 percent. In the given year, the company produced 245,389 mt of steel sections, down by eight percent year on year.
IDC chairman Halil Şahin commented that the long product market in Turkey contracted by 29.7 percent in 2019 and this situation which resulted from the continued weakness in the construction market affected all market players. He said that the company’s sales in the domestic market decreased by 26 percent year on year in 2019, while its sales to the export market were up six percent year on year despite safeguard measures.
As for the outlook for the fiscal year 2020, Şahin stated that they expect to recover the company’s loss if the conditions in the construction industry and/or foreign markets show an improvement, although 2020 seems to be a tough year due to the continuing safeguard measures in the foreign markets.