BGC Partners: ERDEMIR 1Q19 Earnings: Despite weaker steel prices, a good set of results
Erdemir reported TL997mn net income in 1Q19 (down by 6%, y/y), slightly better than consensus estimate of TL957mn (BGC: TL834mn). Y/y and q/q weakness is due to a) falling steel prices and contracting spreads, and b) high tax rate of 39% in 1Q19 due to TL’s depreciation vs. our 30% estimate (due to IFRS regulation, Erdemir requires to recognize FX difference as a tax base (due to US$ functional currency)); but stronger operational performance has raised the bottom line above estimates.Eregli Demir Ve Celik Fabrikalari is engaged in the production of iron and steel rolled products, alloyed and non-alloyed iron, steel and pig iron castings, cast and pressed products, coke and their by-products.
BGC has been one of the major market players in Turkish OTC debt, FX and swaps markets since 1998.
We started offering corporate finance and investment banking services to our clients in 2013. We offer a complete range of financial services to help our clients achieve their goals. Our main areas of activity within investment banking are as follows:
- Mergers & Acquisitions
- Equity Capital Markets
- Debt Finance & Advisory
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