Net profit below expectations from Ford Otosan

Ford Otosan made a net profit of 5.35 billion TL in the first quarter of 2023. The market expectation was for a net profit of 5.5 billion TL. While the company's first-quarter net profit EBITDA remained below expectations, total sales were realized as 66.3 billion TL, below the expectation of 67.4 billion TL. Total turnover increased by 138 percent on an annual basis. EBITDA grew by 99 percent annually to 6.79 billion TL, but remained below the market expectation of 6.93 billion TL in the first quarter. The company stated that the factors supporting profitability in the first quarter of 2023 were; strong domestic sales, increase in international sales, pricing discipline, cost reduction measures and effective expense management, cost-plus export agreements and the exchange rate effect with an annual average increase of 30 percent in Euro/TL in the first quarter. 126 percent increase in the company's export revenues due to the effect of the exchange rate In the first quarter, Ford Otosan's export numbers increased by 72 percent annually, to 131,378 units, also with the effect of the Craiova Factory. Export revenues were realized as 50.778 billion TL. Due to the increase in the company's export numbers and the effect of the exchange rate, export revenues increased by 126 percent annually. While domestic sales increased, the share of exports in sales revenues decreased. Domestic wholesale sales increased by 77 percent annually, to 26,662 units. The company's domestic sales revenue increased by 187 percent annually, to 15,524 million TL, while total sales increased by 73 percent annually, reaching 158,040. Total sales revenues increased by 138 percent annually, to 66.3 billion TL. The share of exports in sales revenues decreased to 77 percent. It was stated that cumulative sales of light commercial vehicles up to 3.5 tons in Europe increased by 9.5 percent due to the low base of the previous year. The company's total production units increased by 65 percent on an annual basis in the January-March period to 162,361 units. While the capacity utilization rate reached 98 percent in total, it was realized as 87 percent in the Gölcük factory, 138 percent in the Yeniköy factory, 112 percent in the Eskişehir factory and 105 percent in the Craiova factory. The company shared its expectations for 2023 Ford Oto predicts that total automotive market sales will be between 800-850 thousand units in 2023, while it shared its estimate that domestic retail sales will be between 90-100 thousand, international sales will be between 550-570 thousand and wholesale sales will be between 640-670 thousand units. In this context, it stated that production units are planned to be between 630-660 thousand units in total. It is anticipated that fixed asset investment expenditures of 1,000 - 1,050 million euros will be made for new projects.