“We Entered The New Year Fitter And Without Any Baggage”

The decline in steel prices and the negative impact of the crisis on export markets has hit Borusan Holding hard. In 2009, the group contracted by 30 percent and took radical measures. Ahmet Kocabıyık says that, as a result of these measures, they entered 2009 “fitter and without any baggage”. Borusan Holding Board Chairman Ahmet Kocabıyık, who said that the most important item on their agenda was “increasing sales”, explained their performance over the last two years, their targets for 2010 and their future strategies.

* How did you fare during the crisis? What did you do during this period?
We didn’t panic. We lived through a similar experience in 2001. We were a little late in responding to that crisis but this time we took the right decisions in time. In 2008 our turnover was $3.4 billion. In 2009, it will be close to $2.5 billion. Most of the contraction of 30 percent is the result of falls in prices. To be honest, we entered the New Year “fitter and without any baggage”.

* Your turnover in 2008 was $3.4 billion, but your profits stood at only $12 million...
We achieved very good results in the first 9 months but a large proportion of our profits were eroded in the last 3 months. In 2009, we re-evaluated all our losses and stocks in order not to carry any excess baggage.

* How was profitability in 2009?
As the result of starting without any excess baggage, our EBITTA will be around $200-250 million.

* What measures did you take during the crisis?
In the past we used to make annual budgets. Since October 2008 we have been making quarterly budgets. We closely monitored weekly sales reports. We reduced expenses. We underwent a 10 percent reduction in our workforce.

* You have a presence in 5 main sectors. What are your targets?
We are predicting growth of 20 percent in 2010. If this trend continues in 2011 then we shall reach our performance of 2008 in 2011. We are investing in energy. Our investments in 2010 will total $350 million. $200 million of this will be allocated to energy.

* What will be the most important items on your agenda in the New Year?
The largest item on our agenda will be increasing sales. We want to do this by preserving our productivity.

“We Were Late Taking Measures”

Was The Crisis Managed Well?
In 2009, Turkey contracted by approximately 6 percent. I do not think that the crisis was managed well. If it had been managed well then there would not have been any need for a 6 percent contraction. Turkey did not deserve this.

What Could Have Been Done?
Measures could have been taken earlier. Because at first the crisis was just regarded as a banking crisis. However, it hit the real sector very suddenly. They could not see this. Measures could have been taken on a sectoral basis.

Is There a Solution For Unemployment?
There are great opportunities in agriculture. In order to produce a solution to unemployment, the system of granting credits could be simplified, particularly in agriculture. If not, unemployment could become a social problem.