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Trio-consortium of Borusan Mannesmann, Erciyas Boru and
Noksel Boru, with the leadership of Borusan Mannesmann Boru,
won a tender for a US$420 million natural gas pipeline project.
The project consists of supplying 30% of the pipes for the 1,900
km Trans Anatolia Natural Gas Pipeline project (TANAP), which
is to carry gas extracted from the Caspian Region to Europe
through Turkey. Delivery of these pipes will begin in 2015.
Borusan Mannesmann Boru’s revenues rose by 20% in 2014 to
US$ 716 million.
C
ontinuing the growth they achieved in previous
years, our distributorship companies increased
sales revenues by 14% in 2014. Our luxury
automobile, construction equipment and power
systems distributor companies accounted for 47%
of the Group’s consolidated sales and 56% of its
operating profit.
While Turkey’s passenger car market shrank by 12% in 2014, the
luxury segment grew by 19% with the help of increasing share
of small-engined models.
Borusan Otomotiv
, the market leader
for several years, broke a retail record, selling over 26,000 BMWs
in 2014, and by far its nearest competitor and consolidated
its position in the market. With sales of over 1,000 MINIs and
over 1,200 Land Rovers, Borusan Otomotiv Group’s total retail
automobile sales reached nearly 28,500 units. Borusan Otomotiv
also achieved a 94% customer satisfaction rating for all brands
through its entire sales network. In 2014, it became the Jaguar
representative for Turkey, and it had sizeable revenues of nearly
US$1.3 billion.
The fleet size of Borusan Otomotiv Premium Araç Kiralama,
which runs the rental operations of brands Borusan Otomotiv
represents as BMW, MINI and Land Rover, grew by 28%,
thereby doubling its market penetration. In 2014, its revenues
jumped 55% to US$71 million.
2
014 got off to a rough start with economic and political
uncertainties causing exchange rate instability in the
first half of the year. This led to a postponement of
major investments, and caused a 21% shrinkage in
Turkey’s construction equipment market. However,
Borusan Makina ve Güç Sistemleri
, distributor of
Caterpillar, a leading global brand in its sector, won the public
tender to supply machinery for the construction of Istanbul’s
3rd airport. This €10 billion worth project will be the third largest
project ever undertaken in Turkey and the fifth largest airport
in Europe. The Company will meet a major portion of the
construction equipment requirement and provide after-sales
services for the project, which will be completed in 2017.
With construction equipment
sales of nearly 1,400 units,
Borusan Makina ve Güç
Sistemleri retained its
leadership position of the
Turkish market in terms of
turnover. In Kazakhstan,
where we have a Caterpillar
distributorship, a 20%
devaluation of the Tenge and a
drop in commodity prices led
to an economically stagnant
year.
However, our representative
there dominated the mining
market and achieved a record
market share. Our Kazakhstan
operations were selected as
one of the best Caterpillar
representations in a global
field of 186 representatives.
Borusan Makina ve Güç
Sistemleri expanded by 34%
in the Azerbaijan construction
equipment market, again
becoming market leader.
Despite contractions and
negative developments in its
domestic and international
markets of operation,
the Company maintained
consolidated revenues of
approximately US$ 900 million.
Despite enormous fluctuations in
Turkish Lira rates and the increase in
geopolitical and macroeconomic risks
in 2014, Borusan Group’s consolidated
revenues grew by 9% to US$4.5 billion.
50
100
150
200
250
300
350
2013 2014
341
328
1500
2000
2500
3000
4000
4250
4500
2013 2014
4,141
4,499
Consolidated Net Sales (US$ Millions)
Consolidated EBITDA (US$ Millions)