January 7, 2008 / 8:32 AM / 11 years ago

UPDATE 2-Turkey's Arcelik says to grow via acquisitions

(Releads with CEO comments, updates share price)

ISTANBUL, Jan 7 (Reuters) - Leading Turkish domestic appliances manufacturer Arcelik (ARCLK.IS) will continue to grow via acquisitions, CEO Aka Gunduz Ozdemir told a news conference on Monday.

Earlier the company said it targeted consolidated sales of 8 billion lira ($6.8 billion) in 2008, up from a provisional 6.8 billion lira last year.

Its priority was to grow faster in China and to grow in North America and the Asia-Pacific region, Arcelik said in a statement before Ozdemir spoke.

He said the company would grow through consolidation and acquisitions.

“We will continue to buy companies in harmony with our strategy,” he said.

Arcelik’s foreign sales were expected to grow 23 percent in 2008, compared to growth of 28 percent in 2007, the CEO said.

The Turkish white goods market would grow at least 5 to 6 percent in 2008, after shrinking an estimated 7 percent in 2007, he told reporters.

Arcelik said it targets investment of 170 million euros ($250 million) and production of 11 million units this year, up from investment of 167 million euros and output of 10 million units in 2007.

In November, the company said its nine-month net profit fell 46 percent year-on-year to 173.2 million lira, hurt by higher sales costs and financial expenses.

Nine-month sales rose 2 percent to 5.16 billion lira.

At the end of the morning session, shares in Arcelik were unchanged at 7.75 lira, having dipped to 7.65 during the morning.

The main share index .XU100 ended the session down just 0.08 percent. (Reporting by Asli Kandemir, writing by Daren Butler; editing by Sue Thomas, Paul Bolding)

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