Koç posts higher profit as Sabancı stumbles
ISTANBUL - Reuters
Higher profit margin in its oil refinery company Tüpraş raised Koç Holding’s profit by 24 percent, whereas Sabancı Holding recorded 27-percent profit decline. AA PhotoTurkey’s largest company Koç Holding has enjoyed a 24 percent surge in its profit in the first quarter thanks to rally in its refinery and automotive businesses.
On the other hand, Turkey’s second largest Sabancı Holding has suffered a steep profit decline of 27 percent due to losses in its banking subsidiary.
Koç Holding posted a 24 percent rise in its first-quarter net profit to 562.1 million Turkish Liras, the Istanbul-based company said in a filing on late May 13.
Sales climbed to 15.7 billion liras from 13.6 billion a year ago, while revenue from financial businesses was 61.2 million liras.
Tüpraş, Turkey’s sole oil refinery owned by Koç, has taken the lead of the surge by increasing its net profit by almost 300 percent to 511.2 million liras during the period.
The company’s automotive businesses also managed to record a better profit performance. Ford Otosan, in which Koç and Ford Motor Company have equal stakes, rose by 15 percent to become 203 million liras, while Tofaş, Koç’s venture with Italian Fiat, reached 134 million liras by jumping 28 percent.
Around the same time, Turkish conglomerate Sabancı Holding, meanwhile, posted a 27 percent fall in first quarter net profit to 403.2 million liras, dragged down by banking unit Akbank despite a rise in sales.
Revenue at the conglomerate rose 20 percent to 6.37 billion lira. Excluding Akbank, revenues rose 63 percent to 2.54 billion lira, according to results filed with the Istanbul stock exchange.
Net profit at Akbank fell 25 percent, beating expectations but weighing on the parent company’s results.
Sabancı Holding’s listed companies also include cement makers Çimsa and Akçansa, and tire maker Brisa.