Friday, August 13, 2010

News: Latest financial results from Corus


In their latest financial results, Tata Steel Europe, which includes the Corus sites in Rotherham, has posted a rise in turnover but a drop in income for the quarter ended June 30.

Turnover rose by 4% on the previous quarter to $3.814m, a 16% increase on the same period last year. EBITDA was posted at $293m, a fall of 17% on the previous quarter but a world away from the $399m loss posted in the first quarter of last year.

The reduced income was as a result of the lower exchange rates because of the depreciation of the pound against the Indian rupee (Tata Steel Europe is part of the Indian-owned Tata Steel Group).

At Tata's European plants, production has risen by 37% on the previous quarter to 3.74m tonnes and market conditions were sufficiently strong for the company's sale prices to continue increasing.

The results also highlight that Tata Steel Europe has made rapid progress in developing a new operating model that will transform the company into a more integrated customer-focused business.

It also said that the cost saving and restructure programme that saw Corus announce in 2009 that 1,100 jobs would be lost in Rotherham, continues to accrue £350m in annual benefits.

As the company continued to bounce back, Corus last month announced plans to recruit 154 new workers for its South Yorkshire manufacturing operations and the resumption of apprentice and graduate recruitment.

Kirby Adams, managing director and chief executive officer of Tata Steel Europe, said: "In April to June the recovery of the European operations continued.

"Not only was there a $692 million turnaround in Corus's year-on-year EBIDTA performance, there was also significant improvements in revenue and capacity utilisation.

"This was the result of higher selling prices and the fact that the full impact of recent raw materials price rises on profitability had yet to be felt.

"European demand has improved in sectors like automotive and aerospace. However, the long-term sustainability of the recovery is highly dependent on future growth in the European construction sector."

Corus website



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