News: Tata Steel Europe profits in the first half
In their latest financial results, Tata Steel Europe, which includes the sites in Rotherham, has posted an increase in turnover and earnings despite weaker market conditions during the summer months.
Turnover at Tata Steel Europe Limited of $8 billion in the first half of the financial year was up 13% from the $7.12 billion in first half of 2010. EBITDA (earnings) of $501m in the first half were an increase of $1.3 billion from the loss of $813m posted in the first half of 2010. Liquid steel production and deliveries were also up on the same period last year.
Turnover in the second quarter was also up on figures announced for quarter 1 but EBITDA (earnings), production and deliveries were down over the summer months compared to the previous quarter.
The profitability in the first half of the year reflects the benefits of the cost saving and restructuring measures that were implemented during the financial crisis that saw Corus announce in 2009 that 1,100 jobs would be lost in Rotherham.
Tata Steel Europe will focus on costs as the economies of Europe continue their slow recovery in order to ensure these benefits are sustained in the event of weakness continuing or recurring in European steel markets.
Dr Karl-Ulrich Köhler, the new Tata Steel Europe MD & CEO, who took up his post in October, said: "The profitability of this first half, in Europe, is a tribute to the cost and restructuring measures implemented in response to the financial crisis and our discipline in securing these benefits as demand returns to the market.
"In September our lenders showed their confidence in the Group's future prospects by agreeing to a refinancing package to stabilise our debt arrangements. We now have a sound platform on which to strengthen our recovery and to develop our product and service differentiation initiatives. But, with an uncertain demand outlook in Europe, our operations also remain focused on cost control and stable manufacturing."
The company also announced that the Speciality Steels business in South Yorkshire also consolidated its return to profitability in the first half of 2011. The business has shown the benefits of a strategy that focuses on exceptional high-value products and sectors. The proportion of high-value sales in the Speciality Steels portfolio has risen from 50% to 90%.
Tata Steel Europe website
Images: tatasteeleurope.com
Turnover at Tata Steel Europe Limited of $8 billion in the first half of the financial year was up 13% from the $7.12 billion in first half of 2010. EBITDA (earnings) of $501m in the first half were an increase of $1.3 billion from the loss of $813m posted in the first half of 2010. Liquid steel production and deliveries were also up on the same period last year.
Turnover in the second quarter was also up on figures announced for quarter 1 but EBITDA (earnings), production and deliveries were down over the summer months compared to the previous quarter.
The profitability in the first half of the year reflects the benefits of the cost saving and restructuring measures that were implemented during the financial crisis that saw Corus announce in 2009 that 1,100 jobs would be lost in Rotherham.
Tata Steel Europe will focus on costs as the economies of Europe continue their slow recovery in order to ensure these benefits are sustained in the event of weakness continuing or recurring in European steel markets.
Dr Karl-Ulrich Köhler, the new Tata Steel Europe MD & CEO, who took up his post in October, said: "The profitability of this first half, in Europe, is a tribute to the cost and restructuring measures implemented in response to the financial crisis and our discipline in securing these benefits as demand returns to the market.
"In September our lenders showed their confidence in the Group's future prospects by agreeing to a refinancing package to stabilise our debt arrangements. We now have a sound platform on which to strengthen our recovery and to develop our product and service differentiation initiatives. But, with an uncertain demand outlook in Europe, our operations also remain focused on cost control and stable manufacturing."
The company also announced that the Speciality Steels business in South Yorkshire also consolidated its return to profitability in the first half of 2011. The business has shown the benefits of a strategy that focuses on exceptional high-value products and sectors. The proportion of high-value sales in the Speciality Steels portfolio has risen from 50% to 90%.
Tata Steel Europe website
Images: tatasteeleurope.com
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