Page 95 - TURKRptSept19

● Sabanci Holding
Sabanci Holding, Turkey’s second largest conglomerate by sales revenues, has reported that its net income declined by 23% on an annual basis to Turkish lira (TRY) 889mn (€144mn) in the second quarter of this year. Energy and insurance operations made the largest contributions to the Q2 profit, but the quarterly performance of the group’s Akbank was disappointing. The lender’s net income plunged 20.2% y/y to TRY1.3bn in the second quarter. At the energy unit, net income soared 71% on an annual basis while the combined profit of the group’s industrial companies rose 15% in the three months. The cement group’s profit plunged 57% compared to the same quarter of 2018. In the first half of the year, revenues of the conglomerate rose 24% y/y to TRY30.4bn but net income dropped 12% y/y to TRY1.95bn. Assets of Sabanci Holding stood at TRY394bn as of end-June, up from TRY372bn a year ago. CEO Mehmet Gocmen unexpectedly resigned from his position at the end of July. He was replaced by Cenk Alper who was president of Sabanci Holding’s industry group. The company did not say why Gocmen stepped down. Shares in the holding company on August 7 declined 1.82% y/y to trade at TRY9.18 which translated into a market capitalisation of TRY18.89bn.
Sabanci Holding has sold 41% of construction equipment leasing services company Temsa Is Makinalari (TIM) to another shareholder, Japan’s Marubeni. By completing the transaction, the buyer increased its stake in TIM to 90% while Sabanci retained a 10% stake. TIM is the sole distributor of high-end products from brands including Komatsu Construction Machinery, Volvo Truck and Crown Warehouse Equipment in Turkey.
Sabanci did not provide the financial details of the transaction. It comes at a
95 TURKEY Country Report September 2019 www.intellinews.com