Vestel to shut centers
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Oluşturulma Tarihi: Mart 28, 2009 00:00
ISTANBUL - Private consumption tax relief, delivered as part of the Turkish government’s fourth financial measures package, has not been able to relieve the white goods industry.
As the industry contracted over 30 percent since the beginning of the global crisis, Vestel, Turkey's biggest television maker, decided to close 200 of its authorized service centers. The company, which operates under the roof of Zorlu Holding, has 500 authorized service centers nationwide.
Vestel had to take measures against the market contraction, according to representatives of the company. Some cities had over seven authorized service centers and started to become an unnecessary burden for Vestel. The company’s decision to close down the service centers was also aimed at increasing efficiency, according to officials. The move will leave approximately 600 people unemployed.
Vestel seems to be the only white goods firm taking such drastic measures.
Arçelik, Turkey's biggest maker of household appliances, has no plans to close its authorized service centers or dealers, said Atilla İlbaş, deputy director of the company.
Indesit has about 222 authorized service centers nationwide and has no plans to shut any of them, said Elif Tercan, marketing manager of the firm. "Besides being dedicated to keeping them open, we also are currently working on restructuring them. New service staff is being trained and service cars are being renewed," she said. BSH, a home appliances company with around 360 authorized services, also does not consider closing its services.
Contraction peaks
The industry began sinking into a slump in the last two months of 2008 and it reached its peak in the first two months of 2009. The 29 percent contraction in the domestic market and 21 percent contraction in exports took a heavy toll on the industry. Then, in hopes to revive the market, companies began launching campaigns that cut down or removed taxes from products. Although it has provided some sales activity, the 6.7 percent tax relief implemented last week has not been enough to block the path of negative developments. The industry is still paying the price for the measures delayed.
Vestel bore losses during the last quarter of 2008 due to the market contraction caused by the economic crisis and a 25 percent rise in exchange rate. Although the company collected more than 45.5 million Turkish Liras in turnover during the first nine months of last year, the end of year profit posted by the company stood at just over 30.8 million liras. Vestel’s profits declined 58 percent, compared to 2007. The company raised its total sales revenue by 6.8 percent to almost 1.27 billion while its domestic sales rose 12.2 percent and external sales 4.2 percent. The share of exports in Vestel’s total turnover declined from 67.8 to 66 percent.
BSH, which has a 25 percent share in Turkey’s white goods sector with its main brands Bosch and Siemens, as well as its premium brand Gaggenau and local brand Profilo, saw its net profit decline from 89.78 million liras to 71.46 million liras in 2008 compared to a year earlier. The firm’s net profit in the fourth quarter dropped by 83 percent compared to an earlier quarter. BHS posted a net profit of 5.8 million liras in the last quarter.
Meanwhile, Arçelik bore losses over 106 million liras in the final quarter of 2008. The firm’s annual profit in 2007 was 137 million liras. That figure declined 95 percent to 6.5 million liras by the end of 2008.
Vestel had to take measures against the market contraction, according to representatives of the company. Some cities had over seven authorized service centers and started to become an unnecessary burden for Vestel. The company’s decision to close down the service centers was also aimed at increasing efficiency, according to officials. The move will leave approximately 600 people unemployed.
Vestel seems to be the only white goods firm taking such drastic measures.
Arçelik, Turkey's biggest maker of household appliances, has no plans to close its authorized service centers or dealers, said Atilla İlbaş, deputy director of the company.
Indesit has about 222 authorized service centers nationwide and has no plans to shut any of them, said Elif Tercan, marketing manager of the firm. "Besides being dedicated to keeping them open, we also are currently working on restructuring them. New service staff is being trained and service cars are being renewed," she said. BSH, a home appliances company with around 360 authorized services, also does not consider closing its services.
Contraction peaks
The industry began sinking into a slump in the last two months of 2008 and it reached its peak in the first two months of 2009. The 29 percent contraction in the domestic market and 21 percent contraction in exports took a heavy toll on the industry. Then, in hopes to revive the market, companies began launching campaigns that cut down or removed taxes from products. Although it has provided some sales activity, the 6.7 percent tax relief implemented last week has not been enough to block the path of negative developments. The industry is still paying the price for the measures delayed.
Vestel bore losses during the last quarter of 2008 due to the market contraction caused by the economic crisis and a 25 percent rise in exchange rate. Although the company collected more than 45.5 million Turkish Liras in turnover during the first nine months of last year, the end of year profit posted by the company stood at just over 30.8 million liras. Vestel’s profits declined 58 percent, compared to 2007. The company raised its total sales revenue by 6.8 percent to almost 1.27 billion while its domestic sales rose 12.2 percent and external sales 4.2 percent. The share of exports in Vestel’s total turnover declined from 67.8 to 66 percent.
BSH, which has a 25 percent share in Turkey’s white goods sector with its main brands Bosch and Siemens, as well as its premium brand Gaggenau and local brand Profilo, saw its net profit decline from 89.78 million liras to 71.46 million liras in 2008 compared to a year earlier. The firm’s net profit in the fourth quarter dropped by 83 percent compared to an earlier quarter. BHS posted a net profit of 5.8 million liras in the last quarter.
Meanwhile, Arçelik bore losses over 106 million liras in the final quarter of 2008. The firm’s annual profit in 2007 was 137 million liras. That figure declined 95 percent to 6.5 million liras by the end of 2008.