Turkey’s biggest 500 industry companies’ operating margins decrease by 16.4 percent

ISTANBUL - Reuters

Turkey’s top 500 industry companies’ 2014 operating margins decreased by 16.4 percent to 30 billion Turkish Liras ($11.02 billion), compared to the previous year, although their net sales increased by 3.9 percent to 473 billion liras ($174 billion), due to the foreign exchange (forex) pressures and rising costs, according to an Istanbul Chamber of Industry (ISO) report. 

With some companies’ positive contribution of the forex positions, the period income of the top 500 industry companies increased by 22.4 percent to 27 billion liras ($10 billion) in the same period, according to the report “Turkey’s 500 Top Industry Organizations-2014.” 

ISO President Erdal Bahçıvan said the industrialists saw dramatic decreases in their operating margins due to the forex pressures and interest rates. 

The earnings before interest, taxes, depreciation, and amortization (EBITDA) data of the companies have also proved this decrease, he said. 

The EBITDA rate of the top 500 decreased to 10.7 percent in 2014 from 11 percent in 2013, according to the report. 

“Turkey’s economy grew by 2.3 percent in the first quarter of 2015, but the manufacturing industries grew a mere 0.8 percent. This shows the poor quality of the country’s growth trend. I mean the economy grew mainly on consumer spending,” Bahçıvan said. 

The total jobs offered by these companies rose by 5.3 percent in 2014 to 580,000, compared to 2013. And the number of companies in red ink decreased from 129 to 83, according to the report. 

In the report, energy giant Tüpraş was named as the 2014’s biggest industry company in Turkey. 

Ford Otosan, the producer of Ford autos, ranked as the second-largest and car manufacturer Oyak Renault as the third-largest. Arçelik and EÜAŞ (Electricity Generation Company) followed them.

Tüpraş has had the top rank since 2005. It earned 37.5 billion liras ($13.8 billion) of turnover in 2014.

The top 10 Turkish companies consist of three energy, three automotive and three iron and steel companies, while one home appliance company, Arçelik, ranks among them.

Tüpraş has also become Turkey’s biggest exporter with its $3.7 billion earned abroad, while Ford Otosan is second with $3.46 billion in exports.