Kordsa Posts 54% Profit Growth in First Half of 2018

Kordsa Reports 54% Profit Growth in First Half of 2018 as Strategic Supplier to Commercial Aviation

Kordsa announced its first-half 2018 results. Market and customer-focused operations, operational efficiency approaches and recent strategic investment decisions had a positive impact on financial indicators. Kordsa reached revenues of TRY 1.5 billion in the first half. Revenue increased 24% compared to the first half of 2017 and 16% compared to the first quarter of this year. Net profit rose 39% to reach TRY 155 million, while parent company share increased 54% to TRY 136 million. Kordsa achieved EBITDA of TRY 263 million, a 36% increase compared to the same period of the previous year, and continued its profitable growth with a strong capital structure. The reinforcement leader revised its 2018 revenue and EBITDA expectations upward. While sales are expected to increase 25-35% by end of 2018, EBITDA growth is projected at 30-40% levels. With the impact of composite company acquisitions in America, these ratios are expected to be 30-40% for sales and 35-45% for EBITDA.

As Kordsa continues to increase its revenues in 2018, it has also expanded markets strengthened through strategic additions to its customer portfolio.

Kordsa announced that with a USD 100 million investment, it has incorporated Fabric Development Inc. (FDI) and Textile Products Inc. (TPI) into its operations. These companies are strategic suppliers to world-leading commercial aviation sector brands, notably Boeing and Toray Composites Materials America Inc. Kordsa views this acquisition as a highly important step in strengthening its position in the US composite market and becoming a strong player in the supply chain of the growing aviation sector. Through this acquisition, Kordsa has taken an important step toward its goal of creating a new Kordsa by generating USD 80 million in additional annual revenue. Kordsa CEO Ali Çalışkan, noting that moving with the right market strategy brings long-term profitable growth, commented on the half-year financial results and these two investments as follows: "The first half of the year was a period in which we supported our growth strategy through investments alongside strong operational performance, and reinforced our technological capabilities through innovations. We are excited to soon commission our new polypropylene monofilament line in construction reinforcement technologies. We are proceeding with the goal of having the technologies from this line serve both the Turkish and European markets. In tire reinforcement technologies, we are managing increases in raw material prices correctly in sales discussions, properly understanding the market and our customers' needs, and producing according to their requirements. In this way, we grow strategically together with our customers. With our investment in America, which opens the path to adding another Kordsa to our current global size and positions us as a leading player in the commercial aviation sector, we are preparing to add new chapters to our success stories. The aircraft tires we reinforce will now be capable of reinforcing wings and fuselages with our composite technologies and runways with our construction reinforcement technologies. We will continue to 'Strengthen Life' through innovations implemented in our three business lines and investments supporting our growth."