Turkish rebar manufacturer Izmir Demir Çelik Sanayi has released its financial performance report for the first nine months of 2024, revealing a complex picture of operational growth coupled with substantial financial challenges. The company's financial statements show a dramatic increase in losses despite improvements in production metrics.
The financial results paint a concerning picture, with IDC reporting a substantial net loss of TRY 3.37 billion ($98.19 million) in the January-September period of 2024. This represents a significant deterioration from the TRY 258.87 million loss recorded in the same period of 2023. Adding to these concerns, the company's sales revenues declined by 12.5% year on year, reaching TRY 32.09 billion ($933.84 million). The operating loss also widened considerably to TRY 2.95 billion ($85.75 million), compared to TRY 1.52 billion in the previous year.
Despite the financial challenges, IDC's production metrics show remarkable growth. The company's steel billet output increased by 28% to 1.37 million metric tons, while rebar production rose by 17% to 725,546 metric tons. This production growth demonstrates the company's continued operational capabilities and market presence despite financial difficulties.
The company's contractual partnerships have also shown positive results, with partner-produced rebar reaching 280,960 metric tons, marking a 6% increase from the previous year. Steel section production similarly improved, growing by 7% to reach 214,290 metric tons, indicating diversification in the company's product portfolio.
Sales volume data presents an encouraging trend, with finished steel sales increasing by 19% to reach 1.22 million metric tons. Export performance has been particularly notable, with international sales growing by 8% to 216,405 metric tons, suggesting strong demand in foreign markets.
The contrasting narrative between operational growth and financial losses highlights the complex challenges facing Turkish steel manufacturers. While IDC has successfully increased production and sales volumes, factors such as high operational costs, market pricing pressures, and broader economic conditions have significantly impacted profitability.
