Turkish pipe maker Erciyas Çelik Boru Sanayi A.Ş. has announced its financial results for the first quarter of 2024.
Accordingly, in the given quarter Erciyas registered a net profit of TRY 30.15 million ($974,854), compared to a net profit of TRY 24.12 million in the same period of 2023. In the same period, the company’s sales revenues increased by 4.4 percent year on year to TRY 1.71 billion ($55.47 million), while it recorded an operating profit of TRY 442.85 million ($14.35 million), compared to an operating profit of TRY 117.29 million in the first quarter of the previous year.
In the given period, 67 percent of the company’s total pipe sales tonnage consisted of export sales. Since the company mainly shipped pipe with large specifications and weight to foreign markets, the shipment and export costs of the company accounted for as much as 85 percent of its total marketing, sales and distribution costs in the first three months of the year.
In addition, the company’s production was negatively affected in the first quarter this year as manufacturing activities were suspended during the United Metal Workers Union’s strike at the Düzce and Mersin factories between January 31 and February 14.
Erciyas stated in its report that, after the Chinese New Year holiday, the global steel market started moving down amid weak demand. The company said it expects the contraction in the markets to continue throughout 2024. According to Erciyas, steelmakers may implement capacity restrictions to control the downward movement in the market if the pressure created by high costs aggravates the decreases in prices.