KOÇ HOLDİNG REGISTERED A NET PROFIT OF TL 452 MILLION WITH A TURNOVER OF TL 13.6 BILLION.
Koç Holding posted consolidated sales revenues of 13.6 billion Turkish lira in the first quarter of 2013 with 619 million Turkish lira pre-tax profits and 452 million Turkish lira net profits after minority interest. "Koç Group will focus on risk management and austerity measures while maintaining sustainable growth strategies for the remainder of the year at a time of political and economic stress in Europe and turmoil in nearby countries." said Turgay Durak, CEO of Koç Holding.
While assessing the results for the first quarter of 2013, Mr. Durak said that loan demand improved as a result of low interest rates, combined with the increased confidence in the country's economy. This, in return, triggered the demand, especially in durable and semi-durable consumer goods. Turgay Durak stated that Koç Group expected the growth in Turkish economy to be based mainly on domestic demand in 2013. "We project that net exports' contribution to growth will be limited as rising domestic demand will increase imports and our export markets have not completely pulled through," he said. Turgay Durak drew attention to the continuing uncertainty in the European economy of late, as well as to rising political conflict in nearby regions. He said Koç Group would maintain foreign risk management and austerity measures in the short term.
"We keep investing at full steam..."
Turgay Durak said that despite of all the fragility in the European economy and the turmoil surrounding the nearby region, Koç Group perseveres with its long-term sustainable growth strategies through investments and practices that produce employment. "We strive to make the highest possible contribution to our country while aiming to use our resources in the best possible way to create continuous high return investments for our country and the stakeholders. Combined investment of 6.8 billion Turkish lira that we planned for 2013 is going ahead at full speed" he said. Turgay Durak pointed out the significance of 2013 in terms of investments for Koç Group companies. "Tüpraş and Ford Otosan in particular are going through a substantial investment period. The $2.4 billion residuum upgrade project of Tüpraş is currently 65 percent complete, with $1.55 invested in the first quarter of 2013. The project is scheduled for completion by November 2014 and will produce 3.5 million tons of high quality white product. When the Tüpraş refineries are working at full capacity, Tüpraş will produce a significant portion of Turkey's need for diesel fuel, which is mostly met by foreign resources. Following the Ford Transit Custom model that was introduced by Ford Otosan last year, work for the New Transit is under way for the end of 2013. In addition, developments and new facility investments for the new commercial vehicles will be carried out throughout the year ahead of the start of production in 2014. Tofaş is maintaining its efforts to export Doblo to the US," said Mr. Durak.
"Momentous global initiatives..."
Turgay Durak commented on how Koç Group's pioneering and exemplary works have been crowned with momentous accomplishments in the international arena. He reiterated the achievement of international credit rating agencies S&P and Moody's assigning Koç Holding's long-term corporate credit rating. He called attention to the fact that both agencies have raised Koç Holding's long-term corporate credit rating to "Investment grade." "We are enormously proud for being the first Turkish company to have been deemed worthy of this rating. Statements from both international credit rating agencies declared that the underlying factors in Koç Holding's accomplishment were effective risk management practices, a balanced portfolio structure that the company enjoys as a result of its robust presence in diverse industries and geographies, importance placed on corporate management strategies, a proven management structure and the solid financial profile of the company," he said. Turgay Durak also commented on the $750 million that Koç Holding borrowed through a dollar-denominated Eurobond issuance with a seven year term. "We set an example for Turkish companies once again as a result of the issuance with the best price at this maturity length." he added.
"Results that make a difference..."
Turgay Durak remarked that Koç Group companies have made strides towards growth by strengthening their positions in Turkey as well as in foreign markets. Mr Durak talked about the worldwide attention the Turkish banking industry has received in spite of challenging global economic conditions. "Yapı Kredi maintained sustainable and profitable growth in the first quarter of the year, increasing its profits by 31 percent year-on-year." he told. Turgay Durak stressed the advancements Arçelik has made on the way to becoming a leader in many of the countries it operates in. "Arçelik successfully showed growth in all of the countries it operates in. Beko has been successful in increasing its market share the most based on the number of items sold in Western Europe. Arçelik maintained its place as the market leader in Romania, in addition to remaining market leader in South Africa with the Defy brand" Mr. Durak stated. "Koç Group companies are becoming globalized through investment." said Turgay Durak. He added, "Otokar is a great example as it is covering a lot ground on the way to becoming a global brand in the defense industry whilst celebrating its 50th anniversary. It exports military vehicles to nearly 30 countries in five continents." Turgay Durak stated that Tofaş distributed dividend in the amount of 480 million Turkish lira, the highest figure ever in its history. "Moreover the Linea model by Tofaş has remained as the most preferred automobile brand in Turkey, while Doblo secured its place as the best selling light commercial vehicle," Mr. Durak said.
"Koç Fest University Sports Games of Turkey hosted 20,000 student athletes in competitions..."
Turgay Durak said that 20,000 athletes from 185 universities competed in 44 events in the Koç Fest University Sports Games of Turkey sponsored by Koç Group. "The final competitions held between April 15 and May 12 gave us a glimpse of the Olympic spirit this year. Student athletes from universities would give us the greatest honor if they win medals in the 2020 Olympics," he said.
"Health Sciences Campus at the Vehbi Koç Foundation is set to become one of the biggest projects of Turkey in its field..."
Turgay Durak pointed out the Vehbi Koç Foundation as a crucial part of the Koç Group and reminded us the work that it has completed to bolster the development of our country, as well as setting the best examples and creating solutions for social needs. He underlined that the first phase of construction in the Koç University School of Medicine Health Sciences Campus continued in the first quarter of 2013. "The Health Sciences Campus will include a Medical Faculty as well as a Training and Research Hospital, emerging as one of the biggest projects of its kind in Turkey. After the completion of the first phase of construction in 2014, which will include the faculty and the hospital, our students will continue their education in the Health Sciences Campus in Topkapı. We will have provided the country with a very valuable service when the second phase of the project has been completed, with the nursing school and accommodation for the nurses and academics are also opened.