Thursday, February 17, 2011

News: Tata Steel's profit after tax doubles for the quarter

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Tata Steel, the Indian company that operates sites in Rotherham has announced profits for the quarter ending December 31 that are 112% higher than the profits in the same period last year.

Results were largely positive for Tata Steel's European operations with turnover and EBITDA (earnings before tax) up for the nine months to the end of the December 2010. Turnover was $12bn in this period with EBITDA at $591m compared to a $670m loss in the same period last year.

Tata also announced their results for the three months to the end of December 2010. Sales were up 7.1% to $4bn but EBITDA of $88m was down 40.2% from the $148m in the same period last year due to higher raw material prices and lower deliveries.

During the quarter, the first under Dr Karl-Ulrich Köhler as MD & CEO, work progressed on the establishment of the new sector-focused sales and marketing teams that are a key element of Tata Steel's reinvigorated European strategy.

Also during the quarter, the company also announced two new research facilities in the UK and an investment of £6.5m in two new vacuum arc remelting furnaces and additional testing equipment at its Stocksbridge to assist in raising output of high-value aerospace steels. A move that will safeguard 2,000 jobs at Rotherham and Stocksbridge.

Dr Karl-Ulrich Köhler said: "Higher raw materials costs and seasonal factors adversely affected our December quarter. We are gearing up to meet continuing market challenges by reinvigorating our strategy. We have rebranded and refinanced our European operations and are introducing a new customer-centric organisational structure.

"International steel prices have been rising since the end of last year on the back of restocking and raw material cost increases, while in Europe there is an exportled recovery in certain major economies and sectors."

Tata Steel website

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