EREGLI IRON AND STEEL COMPANY PROFIT SURGES 400 %
Turkey's biggest flat steel producer Ere?li Iron & Steel Corp. (Erdemir) increased its first quarter consolidated net profit by over 400 percent to YTL 138.176 million. Erdemir's profit during the same period last year was YTL 27.5 million.
The 401.94 percent increase is mainly due to Erdemir's growth in operational profits, in addition to a surge in capacity and reconstruction studies. Sales revenues increased from 39.17 percent, while sales costs increased only slightly by 23.29 percent. This lead to a 253.56 percent increase in the main operational profits.
Erdemir's first quarter short-term debts totaled YTL 1.71 billion, while long-term obligations were YTL 1.712 billion. Some 46.12 percent of Erdemir shares were sold to the Armed Forces Pension Fund (Oyak) for $2.77 million in a privatization move in 2005. Oyak later transferred its shares in Erdemir to Ataer Holding.
Ataer Holding was established in December 2005 as a fully owned subsidiary of OYAK in order to participate in corporations operating in the iron and steel industry.