ISTANBUL (Reuters) -- Turkish vehicle maker Tofas (Turk Otomobil Fabrikasi AS) said on Monday its net profit dipped slightly to 67.65 million lira ($46 million) in the second quarter, below forecasts, from 68.7 million a year earlier.
The company, a venture between Italy's Fiat S.p.A. and Turkey's Koc Holding AS, said sales in the second quarter edged up to 1.479 billion lira from 1.478 billion the previous year.
According to consensus forecasts, net income had been forecast to be 87 million lira and sales 1.548 billion lira.
Shares in Tofas ended the morning session down 8.4 percent at 3.06 lira in modest trade. The shares have surged 183 percent this year, during which the main share index has risen 67 percent.
Finansinvest analyst Ozgur Ucur maintained a "neutral" rating on Tofas given weakness in the domestic vehicle market and an expected sluggish recovery in the European commercial vehicle market.
"The weaker-than-expected operating performance and lower-than-expected take/pay revenues were the main reason the second quarter bottom line fell short of our estimate," said Ucur.
A 'take-or-pay' contract is an agreement between a buyer and seller under which buyers still pay some amount if they do not take the product.
In the first half as a whole, Tofas' net profit fell to 100.52 million lira from 152.74 million a year earlier and sales dropped to 2.35 billion lira from 2.79 billion the previous year.
Net profit had tumbled 60 percent in the first quarter, while sales fell by a third as the company was hit by a sharp contraction in both domestic and export demand as a result of the global slowdown.
Turkey's government slashed sales tax on cars to 18 percent from 37 percent in the second quarter in a bid to revive consumption. The tax rate has now been set at 27 percent until September in order to maintain support for the sector.
Shares in Tofas closed 1.21 percent higher on Monday, just after the results were announced.