Turkish rebar producer Izmir Demir elik Sanayi A.. (IDC) has announced its financial results for the second quarter and the first half of the current year. The company stated that the US revising its growth expectations from three percent to four percent while a downward trend prevails across the world indicates higher finished steel consumption in the US domestic market and increasing scrap needs of US mills. This has caused a decline in import scrap supply for Turkey and an increase in scrap prices, considering that the US is the leading scrap source for Turkey.
In the second quarter, IDC registered a net profit of TRY 45.6 million ($21 million), compared to a net loss of TRY 36.8 million in the same quarter of 2013. The company's sales revenues increased by 40.6 percent year on year to TRY 598.5 million ($276 million). In the given quarter, IDC recorded an operating profit of TRY 32.5 million ($15 million), compared to an operating loss of TRY 23.1 million in the corresponding quarter of the previous year.
During the first six months of the current year, IDC recorded a net profit of TRY 38.4 million ($17.7 million), compared to a net loss of TRY 47.9 million in the corresponding period of the previous year, while the company's sales revenues amounted to TRY 1.1 billion ($507.2 million), rising 35.8 percent year on year. In the given period, IDC registered an operating profit of TRY 32.7 million ($15.08 million), compared to an operating loss of TRY 33.9 million in the first six months of 2013.
IDC said that in the first half this year its steel billet output decreased by 13 percent to 622,699 mt, while its rebar production amounted to 416,771 mt, falling 14 percent, both year on year. Besides, 180,757 mt of rebar was also produced by the company's contractual partners in the given period. During the same period, the company produced 116,143 mt of steel sections at its medium section mill.
According to IDC, in the first half of the current year Turkey's long steel product consumption increased by seven percent year on year, exceeding the consumption guidance.
