Turkish firm sold nearly 50,000 tractors in 2017
TürkTraktör, a joint-venture between the Turkish industrial conglomerate Koç Holding and CNHI, reached nearly 50,000 unit sales in 2017 and raised its market share to 49.3 percent, the company’s chief executive has announced.
TürkTraktör made 321 million Turkish Liras in net profits last year and plans to distribute some 94 percent of this as dividend to its shareholders, according to company representatives.
“While our domestic sales reached 37,590 units with an increase of 12 percent, the overseas sales were recorded as 12,023 units in 2017. With these figures, TürkTraktör closed the year 2017 with 48,613 units, which is a new record. Thus, TürkTraktör raised its market share to 49.3 percent,” TürkTraktör CEO Marco Votta said in a press meeting in Istanbul on Feb. 13.
He added the company also increased its tractor production by 5 percent and engine production by 4 percent compared to the previous year.
The company rolled a total of 48,302 tractors and 38,620 engines off its production lines at its Ankara and Erenler plants in 2017, Votta noted.
TürkTraktör closed the year 2017 with more than 4.2 billion liras in sales revenue, up 22 percent compared to the previous year.
The operating profit was 423 million liras and EBITDA was 492 million liras.
‘94 percent of net profit to be distributed as dividend’
The company’s net profit in 2017 was recorded at 321 million liras, according to company representatives.
TürkTraktör’s dividend proposal for this year was announced as 300 million liras.
The company plans to distribute 94 percent of its 2017 profit to shareholders in March, company CFO Ahmet Canbeyli said.
TürkTraktör shares rose nearly 2.4 percent on Feb. 13 after the 2017 financial results were announced, higher than the main stock exchange average.
TürkTraktör’s net profit was 369.8 million liras in the previous year.
A considerable rise in foreign exchange rates played a key role in profit decline, as the company’s manufacturing activities are based on foreign materials, just like many Turkish companies, according to company representatives.
When asked whether the company expects any shrinkage in the market this year, when the country is seeing the worst drought of the last 44 years, Canbeyli said a significant decrease was not expected in agricultural yields.
According to Canbeyli, the government’s agricultural incentives and energy efficiency will likely positively affect the sector in the upcoming period.
“The government has raised diesel subsidies for farmers to 1.9 billion liras for this year, up 171 percent compared to the previous year. Turkey’s Ziraat Bank, which is the top bank in offering tractor loans, has also significantly extended the repayment due for mainly outdated tractors,” he said.
He added that new measures were underway to lead an intensive renewal of old tractors, which created a 10 billion lira loss to the economy on an annual basis in addition to creating serious environmental concerns and health risks.