Otokar, a Koç Group company, announced its 2018 financial results. Otokar General Manager Serdar Görgüç stated that the company left behind a much more challenging year compared to 2016 and 2017, "We closed 2018 with a turnover of TL 1.679 billion. As we take bold steps toward becoming a global player, we doubled our export figures year on year. We posted TL 164 million in net profit, up 65 percent."
Otokar, Turkey's leading automotive and defence industry company that operates in more than 60 countries across five continents with products with owned intellectual property rights, disclosed its 2018 financial results. General Manager Serdar Görgüç explained that Otokar continued working toward its goal of becoming a global brand in 2018 despite the tightening in the domestic market, "In domestic market, the previous three years' tightening trend in the segments in which we have operate continued in 2018 as well. The turmoil seen in the financial markets this year and the cash shortage that followed had a negative impact on the domestic market.
“As a result of these developments, Otokar closed 2018 with a turnover of TL 1.679 billion, down six percent. Still, we reached our targets in 2018 and posted TL 164 million in net profit, up 65 percent, thanks to the plans we made by anticipating these developments and taking timely measures."
Görgüç pointed out that Otokar focused more on exports in 2018 due to the uncertainties and tightening in the domestic market and took positive steps in both commercial and military segments, "In 2018, we concentrated more on exports. With our R&D, engineering capability, skilled human resource and strong sales network, we increased exports by 99 percent and reached 211 million USD in export revenues. The share of exports in turnover rose from 31 percent to 65 percent year on year. The contribution of our subsidiaries and affiliates abroad and the increase in our export sales had a positive impact on our profitability."
Serdar Görgüç underlined the effect of major export deals on the success that Otokar capture in exports:
"Two export deals, which we started to deliver last year and will continue to deliver in 2019, made their mark on our 2018 performance. The first is the agreement with the UAE Armed Forces to supply armoured vehicles. The second was winning the bus contract of the Bucharest Municipality. For the contract that includes delivery of 400 buses and provision of aftersales services for these buses for eight years, and also happens to be the largest export deal for a single item by a Turkish bus brand, we established a company in Romania. Once the deliveries are completed, Bucharest will become the next metropolis with the largest Otokar fleet after Istanbul."
Serdar Görgüç added that Otokar started 2019 with new and important targets, "This year, we aim to continue being the highly preferred brand of the industry in public and tourism transportation with buses that meet customer expectations. Our goal is to maintain our leadership in the Turkish bus market. Furthermore, in 2019, we will continue to take firm and confident steps toward becoming a global brand by focusing even more on exports.
“We will continue to deliver the orders we received and strive to increase our presence in target markets with vehicles developed specifically for exports. By interpreting the expectations and needs of our customers accurately, we aim to keep up with the rapid changes in technology, benefit from the opportunities offered by digital technologies, manufacture value-added products and provide services in the most effective manner."