Turkey's largest steelmaking group Eregli Demir ve Celik Fabrikalari TAS (Erdemir) has announced its financial results for the second quarter and the first half of 2012, reporting a decrease in its net profit for both periods.
In the second quarter, the net profit of the company amounted to TRY 81.6 million ($45.67 million), down 72.2 percent year on year. The company's sales revenues in the given quarter increased by 7.32 percent to TRY 2.34 billion ($1.31 billion), while its operating income decreased by 67.8 percent to TRY 156.2 million ($87.36 million), both compared to the corresponding period of the previous year.
In the first six months of the current year, Erdemir registered a net profit of TRY 205.65 million ($115 million), down by 63 percent compared to the same period of 2011. In the given period, its sales revenues amounted to TRY 4.78 billion ($2.67 billion), increasing by13.4 percent, while the operating income of the company decreased by 68.1 percent to TRY 270 million ($151 million), both year on year.
Regarding the operational results, in January-June 2012, crude steel production at Erdemir's Eregli works decreased by 13.4 percent year on year to 1.41 million mt due to relining works in the blast furnace No. 2, while crude steel output at the producer's Iskenderun works increased by 9.6 percent year on year to 2.22 million mt.
In the first six months, the finished steel output of its Eregli works decreased by 2.5 percent to 1.73 million mt, while its Iskenderun works produced 2.17 million mt of finished steel, up 35.7 percent, both compared to the same period of the previous year. Additionally, the finished steel sales volumes of both the Eregli and Iskenderun works increased in the given quarter, standing at 1.87 million mt and 2.14 million mt, respectively.
For the first six months of the current year, the total investment expenditures of the Eregli and Iskenderun works amounted to $93.84 million. The total investments for the first six months of the previous year were $70.25 million.