Aug. 15 (Bloomberg) -- A Turkish maker of anti-riot vehicles and water-cannon armed trucks jumped the most in three years as the company swung to a profit after boosting its focus on export markets from Sudan to Kurdistan.
Katmerciler Arac Ustu Ekipman Sanayi & Ticaret AS, as the company is formally known, climbed 18 percent to 2.38 liras, the most since the shares started trading in Nov. 2010. About 5.8 million shares traded, more than thirteen times the three-month daily average, data compiled by Bloomberg show. The stock has declined 7 percent this year, compared with a 13 percent gain in the benchmark Borsa Istanbul 100 Index of stocks.
Chief Executive Officer Mehmet Katmerci predicted last year that images broadcast worldwide of Turkish protesters fleeing the vehicles his company produces could help generate business for the Izmir-based company in nations from Brazil to Libya. The company raised its target for export sales to 70 percent of revenue this year from about 60 percent in 2013, according to Executive Vice President Furkan Katmerci.
“Revenues grew remarkably thanks to higher deliveries in Turkey and stronger demand from abroad,” Alper Ustunisik, an analyst at Yatirim Finansman Securities, said in an e-mail. “The positive trend in operating figures will continue.” Ustunisik recommends buying the stock, rating it at outperform.
The company reported profit of 6.66 million liras ($3.1 million) in the second quarter, compared with a loss of 6.33 million liras in the same period a year earlier, according to a financial statement published yesterday. Revenue in the second quarter was 54.5 million liras, compared with 25 million liras in the same period a year earlier.
The number of vehicles sold jumped 78 percent to 453 in the first half. The number of riot trucks sold in the period rose seven-fold to 56. The company declined to provide details of what kind of vehicles were sold to specific countries.
“Since end-2013 we’ve been focusing on Africa and we’re seeing results as of the second quarter,” Furkan Katmerci said in a phone interview today. “We’ve sold various equipment to Kenya, Sudan, Mali and Macedonia in the first half. We’ve been selling riot trucks, sewage trucks and the like to the Kurdish administration in Erbil.”
Kurdistan is an autonomous region in Iraq.