Loss-makers among 500 large industry firms nearly double

Loss-makers among 500 large industry firms nearly double

ISTANBUL - Hürriyet Daily News
Loss-makers among 500 large industry firms nearly double

This file photo show a Ford Otosan plant in Turkey. The automotive producer has outpaced its French rival Oyak-Reanault according in the largest 500 industrial companies. Hürriyet photo

The number of loss-making industrial firms rose from 66 in 2010 to 120 in 2011, according to the “500 Largest Industrial Enterprises” list for 2011 issued yesterday by the Istanbul Chamber of Industry (İSO).

The report also indicated that the share of the largest 500 industrial enterprises in the gross domestic product declined to 9 percent in 2011 from 9.3 percent in 2010.

Tüpraş, Turkey’s sole oil refinery, topped the İSO 500 list. The company is Turkey’s largest industrial enterprise with sales totaling 27.4 billion Turkish Liras, İSO Executive Board Chairman Tanıl Küçük told a press meeting yesterday where the İSO 2011 report was released. Tüpraş, which was also last year’s champion industrial enterprise in Turkey, operates four oil refineries and has an annual crude oil processing capacity of 28.1 million tons.

The İSO list ranks companies in terms of sales from net production and welcomed 74 new entrants this year, 19 of which did not want to disclose their names.

Deteriorating financial structure

“The results of [the] İSO 500 survey put forth [evidence] that 2011 was not a bright year for industrial enterprises despite the positive course of the economy aside from the current high account deficit.

Profitability indicators, particularly net profit/loss and added value, have decreased compared with 2010 and financial structures have [also] deteriorated, while sales from net production and gross sales of industrial enterprises in 2011 increased compared with the previous year,” the İSO report said.
According to the report’s production sales figures, Tüpraş is followed by Ford Automotive at 8.5 billion liras, Oyak-Renault at 7.3 billion liras, Electricity Generation (EÜAŞ) at 7 billion liras and Tofaş at 6.3 billion liras.

These top five companies were followed by Arçelik at 6.2 billion liras, Ereğli Iron and Steel at 5.2 billion liras, İskenderun Iron and Steel at 5 billion liras, İÇDAŞ at 4.8 billion liras and Aygaz at 4.5 billion liras in recorded sales.

Only eight state companies were listed within the largest 100 industrial enterprises, namely, EÜAŞ, Turkish Coal Enterprises, Turkey Sugar Plants, the Turkish Petroleum Corporation (TPAO), the Eti Mine Works General Management, the General Directorate of Tea Enterprises (Çaykur), the Machinery and Chemical Industry Corporation (MKEK) and Soma Electricity Generation.

In terms of profitability rankings, TPAO topped the list at 1.8 billion liras, followed by EÜAŞ at 1.3 billion liras, Tüpraş at 1.26 billion liras, Eti Mine Works at 841 million liras and Ereğli Iron and Steel at 837 million liras.

The combined exports of the 500 largest industrial firms increased 17.8 percent last year, a figure below the 18.5 percent increase in overall exports that was registered by the Turkish economy that same year.

The vehicle industry came first among the export leaders, comprising 25.3 percent of the İSO 500 list. The industry registered an annual growth of 14.7 percent in exports last year.

The vehicle industry is followed by the base metal industry, which registered a total 31.7 percent exports increase, totaling 19.8 percent of the list.

The third largest industry on the list is the chemicals, petroleum products and plastics industry with a 17.8 percent share. The industry registered an exports increase of 16.2 percent year-on-year.