According to research of "500 Largest Industrial Establishments of Turkey" made in 2016, production sales of 500 industrial Companies were increased to 490 billion TL with an increase of 8.8 percent and the operating profit was increased to 52.4 billion TL by 18.6 percent.
According to the report, financial liabilities of ISO 500, which were 140 billion liras in 2014, were increased to 175 billion liras by 25.1 percent in 2015 and it increased to 207 billion liras by 18.8 percent in 2016.
While the number of Companies that made pre-tax profits among 500 industrial enterprises decreased from 400 to 392 in 2016, the number of Companies that made loss increased from 108 to 100. Tüpraş, Ford Otosan and Tofaş took place among the top three ranks according to results of production sales in the research of 500 largest industrial establishments of ISO Turkey” made in 2016.
Total export of 500 industrial enterprises was increased to 55.1 billion dollars with an increase of 3.1 percent. 500 industrial enterprises made 38.7 percent of its Turkey exportation in 2016. Automotive sector Companies, which considerably support the export, ranked among the top four exporting Companies in 2016. These Companies were Ford, Tofas, Oyak-Renault and Toyota.
The top 100 industrial corporations of Turkey
TUPRAS BECAME THE LARGEST COMPANY OF TURKEY
The Chairman of the Board of Istanbul Chamber of Industry (ICI) Erdal Bahçıvan stated that industrial Companies had lost more than half of their operating profits in 2016 as financial expenses and reported that negative effects of interest and currency fluctuations would continue.
Bahçıvan making speech at a meeting where report was explained stated that the financial expenses increased to 29 billion TL by with an increase of 3.6 percent in 2016 and added that: "Ratio of the financial expenses to net sales was decreased to by 0.3 points and became 5.2 percent. This means that the Companies effectively manage their financing expenses as in their real operating areas in despite of financial congestion in the second half of 2016".
"500 enterprises managed their financing expenses a little more effectively with the effect of regression in the interest rates in 2016... We observe that decrease in value of TL has a lower effect on the financing expenses below expectations because share of the financing expenses within operating profit decreased to 55.4 percent from 63.4 percent, in 2016."
"TOTAL PERIOD PROFIT OR LOSS INCREASED BY 33.2 PERCENT IN 2016 AND BECAME 37.7 BILLION LIRAS"
Bahçıvan, stating that the industrial enterprises succeeded to limit negative effect of exchange rate fluctuations and decrease in value of TL financing expenses, emphasized that interest and exchange rate fluctuations within current financial structure of the industry will, however, continue to negatively affect profitability and capital accumulation in the industrial sector.
Bahçıvan, stating that there was a significant increase in profits obtained in 2016, expressed that absolute magnitude of EBITDA was 76.1 billion TL in ISO 500 Large Industrial Enterprises, in 2016. Bahçıvan stating that this magnitude was 62 million TL in 2015, said that “EBITDA magnitude increased by 22.8 percent. Total profit or loss for the financial year was increased by 33.2 percent in 2016 from 28.3 billion Liras to 37.7 billion Liras."
Bahçıvan, drawing attention that there is a balance disturbed against the shareholder’s equity, stated that share of debts in the resource structure was increased from 45.2 percent in 2007 to 61.9 percent in 2016 and said that share of the shareholder’s equity was decreased from 54.8 percent to 38.1 percent within the same period.
Bahçıvan, emphasizing that these ratios show the most negative debt/ shareholder’s equity relationship in the last 10 years, said that "Indebtedness ratios, which are close to the world average in 65/35 band, and an important message given by this indicator is as follows: Industrial enterprises are not able to use their internal resources for growth because of the fact that a considerable part of their profits that they had with great efforts and drop by drop is obtained by the financial expenses” and added that:
“The fact that new investments are made on more borrowing-based for growth due to insufficient and dissolving shareholder’s equity shows that 500 Large Industrial Enterprises are relatively within unhealthier finance cycle."
