Kordsa Posts 47% Increase in EBITDA to TRY 210 Million

Kordsa closed the first half of 2019 with successful financial results and continues its investments in composite technologies. Kordsa's net profit in the second quarter of 2019 reached TRY 108 million, up 29% compared to the same period of the previous year. With correct pricing strategies and a strong market position, Kordsa increased its operational efficiency and raised its EBITDA by 47% to TRY 210 million. Kordsa expanded its advanced composite materials portfolio for the aerospace and space industries through investments made in the US in 2018, and with the inclusion of US-based Axiom Materials, became the leading player in the market for high-temperature-resistant oxide-oxide ceramic composite materials used in aircraft engines. Kordsa, a subsidiary of Sabancı Holding, announced its second quarter 2019 financial results. Kordsa's investments in technology and innovation, along with the positive contribution of composite companies in America to revenues, reflected positively on its financial indicators. Kordsa maintained steady growth in the second quarter of 2019. In the second quarter of 2019, it increased its revenues by 60% compared to the same period in 2018, reaching TRY 1.3 billion. Net profit rose 29% to TRY 108 million. EBITDA, the most important indicator of operational efficiency, reached TRY 210 million.

Kordsa CEO Ali Çalışkan expressed his satisfaction with the achievements of the first half of the year and made the following statement regarding the half-year financial results:

"We balanced the increase in raw material prices for tire reinforcement technologies with our correct pricing strategies and strong market position, completing the first half of 2019 with growth. We are continuing our growth with our strong operational performance. We support this growth with our technologies that create value for our customers and set direction for the industry, as well as with our new investments. Following the start of operations of the additional polyester yarn line in Turkey that we launched in 2016 with a TRY 100 million investment and the line that came on stream in Indonesia in our tire business, we gained an additional capacity of 7,000 tons each of polyester yarn. With this investment we implemented, we matched our leadership in nylon yarn in polyester yarn as well, strengthening our position among the world's largest polyester yarn producers. In our composite business, we are ready to add new success stories with our latest acquisition, which completes the first phase of our journey to create a second Kordsa. Our aerospace sector story began when we incorporated Fabric Development and Textile Products, which produces structural materials requiring high engineering, into our company. Subsequently, our capabilities expanded when we acquired Advanced Honeycomb, which produces interior component materials. Now with the Axiom acquisition, we can also strengthen the engines of aircraft whose wings, fuselage and interior we have reinforced. With this investment step, we have become the leading player in the market for high-temperature-resistant oxide-oxide ceramic composite materials used in aircraft engines. By completing our advanced technology composite semi-finished product portfolio, we will continue to enhance life in a wider geography with deeper capabilities."