Leading Turkish white goods maker Arcelik who trade as Beko in the UK have posted a huge fall in third-quarter consolidated net profit to 240,000 Turkish lira (£95,000) on Tuesday, due to the impact of the global financial crisis.
In the same period last year Arcelik, partly owned by Koc Holding, reported net profit of 65.68 million lira.
However, Arcelik said its third-quarter sales had actually risen slightly to 1.755 billion lira, from last year’s 1.745 billion. So sales up but profits down it would appear.
Arcelik’s shares closed down 3.7 percent on Tuesday at 2.05 lira, before the results were announced. They have fallen 75 percent since the start of the year, underperforming the Istanbul index .XU100, which has fallen by about 55 percent.
“These uncertainties experienced in the market are having a negative impact on the durable goods sector as they are on many other sectors,” the company said in a statement to the Istanbul Stock Exchange.
“The aim is for the negative developments in West European markets to be balanced out by other markets,” it said.
It said rising raw materials prices had a negative impact on the profitability of its foreign activities.
Arcelik has been expanding abroad through partnerships and acquisitions. Last year, it bought a Chinese washing machine maker as part of its strategy to expand into Asia.
