Earnings Review / Erdemir (EREGL TI) - Resilient profitability in 3Q18: Maintain Buy
Erdemir posted net income of TRY1.3b in 3Q18, in-line with our estimate of TRY1.3b but 10% lower than the RT consensus of TRY1.5b. NI growth was curbed by higher-than-expected effective tax rate of 51% in 3Q18 (vs. our estimate of 22%). Operationally, 3Q18 EBITDA of TRY2.6b came higher than our estimate of TRY2.2b and RT consensus of TRY2.3b. In 3Q18, EBITDA per unit was down by 8% q-q to USD223/ton, slightly higher than our estimate of USD192/ton, backed by healthy steel making margins and TRY weaknesses.
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.
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