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TURKEY: Interest payments help Tofas net profit

By just-auto.com editorial team | 16 May 2006

Tofas, a car making joint venture between Fiat and Koc Holding, has reported a jump in first quarter net profit thanks in part to income from interest payments, according to Reuters.

Tofas, which produces cars for the domestic and export market, said on Tuesday net profit rose 115% to 25.80m lira ($US18m), according to the report.

Sales rose a more modest 13% to 605.05m lira, while gross operating profit rose 18% to 59.96m. But a 90% rise in interest income boosted the bottom line.

EFG Istanbul analyst Osman Memisoglu attributed the rise to better than expected results and a 5% fall in the stock price on Monday amid a wider market sell-off, according to Reuters.

"The company's profit, with financial income and the impact of tax came in better than we expected ... Better-than-expected results could be supporting buying," he said.

According to Reuters, the firm, whose models include the Punto and Doblo, said it produced 37,451 vehicles in the first quarter, up 5% from the same period last year, while vehicle sales by volume rose 12% year-on-year.