Compared to the first quarter of 2015, Kordsa Global increased its profit by 153% and grew by 11.4% in the second quarter of the year
Kordsa Global, the leading industrial yarn and cord fabric producer of the world, announced its financial results for the second quarter of 2015 covering April-May-June. With an 11.4% increase in total sales compared to the previous quarter, Kordsa Global’s total revenues amounted to TRY 869 million at the end of the first half of the year. While net profit reached TRY 34.2 million in the second quarter of 2015, core operating profit realized was TRY 47.6 million in the same period.
Evaluating the results, Kordsa Global CEO Cenk Alper underscored his pleasure to see that the profitability trend achieved in 2014 continued in the second quarter of this year. He emphasized that Kordsa Global, which is performing according to its budget targets, would keep increasing its profitability in 2015. Stating that there were no changes in their 2015 year-end projections, Cenk Alper said that he expected sales to increase in the range of 10 to 20% and EBITDA 25 to 35%.
Kordsa Global CEO Cenk Alper made the following remarks: “Kordsa Global had a positive second quarter in 2015. We were rewarded in the best way possible for our efforts not only in the financial sense, but also in terms of our influence on the stock exchange, and our contribution to the production of technology.
2015 started with a growth trend and confirmed Kordsa Global’s success with regard to financial indicators in the second quarter as well. Despite the vulnerable course in money markets, Kordsa Global, which makes 77% of its sales in US Dollar and 23% in Euro, benefited from the situation and performed better than it had targeted.
As a result of a free float rate that reached 29%, an increased traded volume as well as market cap in the first half of 2015, Kordsa Global was added to the Istanbul Stock Exchange National 100 Index. Attracting ever-increasing interest from investors, Kordsa Global thus started to be influential on market growth as well.
In the second quarter, we distributed TRY 68 million in dividends to our partners, thereby sharing the fruit of our success.
Thanks to the innovation and R&D work we have been pursuing at the Kordsa Global R&D Center since 2008, the portfolio of our patents, most of which are international, has reached 236. As a consequence of our efforts, we were proud to witness a four-rank leap in the Turkish Patent League where we were tenth last year, and completed as the 6th company this year with 14 patent applications in the first half of the year. In cooperation with Sabancı University, we initiated the investment in the Composite Technologies Center of Excellence, which will become operational in 2016. This investment will lend us the capacity to produce advanced composite material technologies that transform many sectors from aviation to automotive.
We reinforced our presence in the Asian market with our USD 100 million-plant in Indonesia that was commissioned at the beginning of 2015. We ranked among the top three producers in the league of HMLS Polyester yarn and cord fabric. With our new-generation yarn production capability, we are planning to make full use of this additional 18 kiloton-capacity gradually in 3 years.
Challenging market conditions prevail in some of the geographies of our production sites. Our plant in Brazil is influenced by the slowdown of the national economy and the negative developments in money markets. Low-quality, low-cost Chinese goods that enter the US market play a role in the shaping of the market. Despite all these factors, increase in demand and strong market dynamics in Europe and Asia compensate for the said negative effects. With its strong technical infrastructure, long-term customer relations, and balanced portfolio in various geographies owing to its global structure, Kordsa Global is reaping the fruits of the wealth of experience it has accumulated in 42 years.”