Koç, Sabancı profits drop
ISTANBUL - Reuters
Koç Holding CEO Turgay Durak says global crisis impacted Koç Holding’s first quarter profits.Two of the largest conglomerates in Turley, Koç and Sabancı holdings, announced falling profits on May 18.
Koç Holding’s net profits fell 10 percent to 538 million Turkish Liras for the first quarter of 2012, on the back of the global economic crisis, while the drop was even higher at the Sabanci Holding by 35.5 percent to 296.4 million lira. The company’s net profit was at 401.5 million lira in the same period of last year.
Sales rose 10.4 percent to 2.75 billion lira, Sabanci said.
“With prudent risk and budget management we expect our economic activities to gain speed in the remainder of the year,” said Koç Holding’s Chief Executive Officer Turgay Durak, following the release of the quarterly results.
Koç Holding’s sales revenues, however, went up 28 percent in the first quarter to 17.63 billion liras, according to the company’s announcement to the Istanbul Stock Exchange. “Uncertainties in Europe and the world have increased in the last quarter. In such a period, Koç Holding is giving priority to short-term risk management, savings and efficiency-increasing growth strategies,” said Durak. In 2011, the number of people employed by Koç increased by 11 percent.
The sectors that Koç and Sabancı holdings are active include energy, automotive, durable consumer goods, and finance. Koç has the Tüpraş, Ford Otosan, Arçelik, Tofaş and Yapı Kredi Bank labels under its umbrella. Some of the businesses that are under Sabancı Holding include Akbank, Enerjisa, Akçansa, Teknosa, Kordsa Yünsa.