Page 48 - TURKRptMay19

remained relatively muted.
The PMI is a composite single-figure indicator of manufacturing performance derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.
“In Turkey, the [manufacturing PMI] survey [for March] adds to the evidence that the recession eased in Q1, although the recent financial market turmoil means that any recovery will be bumpy,” James Swantson of Capital Economics said on April 1 in a research note entitled “EM manufacturing improves at the end of Q1”.
There appears to be a chance here that analysts are not fully taking into account the impact of pre-election stimulus measures on Turkey’s economic activity in March , but Liam Carson, also of Capital, determined in a research note on the PMI data that “[the] reading does offer a tentative sign that Turkey’s recession is starting to ease.”
4.3.2 Corporate profits dynamics
Combined profit of listed Turkish carmakers rises just 3.5% in 2018. The combined net income of the eight Turkish carmakers with shares traded on the stock exchange increased by only 3.5% y/y in 2018 to stand at TRY3.4bn, reflecting the effects of problems in the local economy. Despite the government moving to help the automaking industry in the form of tax cuts, Turkey’s auto market shrank last year as overall economic conditions deteriorated, hitting consumer confidence.
The poor performance of the Turkish auto industry continued well into the first quarter of 2019, at least. Latest data showed that in the first quarter sales of passenger cars and light commercial vehicles (LCV) dropped as much as 44.2% y/y. In March alone, sales plunged some 36% on an annual basis.
In 2018, a total 620,937 passenger car and LCV units were sold, down from 956,194 units in the previous year.
Otokar, Ford Otosan, Karsan, Tofas, Anadolu Isuzu, Tumosan, Dogus Otomotiv and Turk Traktor are the eight listed carmakers.
According to data compiled by state-run news service Anadolu, Ford Otosan posted the largest profit with TRY1.68bn, a 13% increase from 2017, while Otokar’s net income soared 65% to TRY164mn.
The net income of Tofas increased from TRY1.3bn in 2017 to TRY1.33bn last year.
Anadolu Isuzu reported a net loss of TRY67mn for 2018 while the net loss of Tumosan grew 70% to TRY22.2mn. Karsan swung to a loss in 2018 of TRY23.4mn from a profit of TRY6.9mn in 2017.
Combined sales revenues of the listed carmakers grew by 10% last year to TRY71.2bn.
The share prices of the carmakers on average fell 34% last year against the 21% decline seen in the main Istanbul stock exchange index, the BIST-100.
Turk Traktor was the worst performer with a 53% plunge in its share price, while shares in Ford Otomotiv and Karsan closed the year with 11.9% and 18.6% declines, respectively.
48 TURKEY Country Report May 2019 www.intellinews.com