News: Tata Steel suffers from slowdown in the European market
Steelmaker, Tata Steel Europe has suffered from the market slowdown and lower steel prices for the first half of the year to September 30.
The Indian-owned company operates specialist steel producing sites in Rotherham. The steel, predominantly stainless and low alloy grades, is used in landing gear and aircraft engines.
In its latest financial results, Tata Steel Europe posted a turnover of $7.7 billion for the first half of the year and EBITDA (earnings before tax) was $110m. This meant that the parent company posted a loss of $69m, compared with profits of $40m in the same period last year.
For the second quarter, earnings in Europe were down by $8m on the previous quarter.
Dr Karl-Ulrich Köhler, MD & CEO of Tata Steel in Europe, said: "European steel demand and prices have weakened since the spring and this took its toll on our financial performance.
"Our response has been to accelerate our efforts to reduce those costs that we can influence. We are also bringing forward our new product development schedule and other elements of our market differentiation strategy. We expect the benefits of these actions, aimed at meeting our long-term goal of becoming an "all-weather" business, to be reflected in future performance."
In addition to cutting costs, last month, Tata Steel Europe outlined a new strategy to target demanding industries, like automotive, aerospace, mechanical engineering and construction.
By combining its advanced steel products with a customer-oriented business model and by developing new products in partnership with its customers, the company aims to raise the share of "differentiated" products sales within its portfolio by over 50 percent between now and 2016.
Tata Steel Europe website
The Indian-owned company operates specialist steel producing sites in Rotherham. The steel, predominantly stainless and low alloy grades, is used in landing gear and aircraft engines.
In its latest financial results, Tata Steel Europe posted a turnover of $7.7 billion for the first half of the year and EBITDA (earnings before tax) was $110m. This meant that the parent company posted a loss of $69m, compared with profits of $40m in the same period last year.
For the second quarter, earnings in Europe were down by $8m on the previous quarter.
Dr Karl-Ulrich Köhler, MD & CEO of Tata Steel in Europe, said: "European steel demand and prices have weakened since the spring and this took its toll on our financial performance.
"Our response has been to accelerate our efforts to reduce those costs that we can influence. We are also bringing forward our new product development schedule and other elements of our market differentiation strategy. We expect the benefits of these actions, aimed at meeting our long-term goal of becoming an "all-weather" business, to be reflected in future performance."
In addition to cutting costs, last month, Tata Steel Europe outlined a new strategy to target demanding industries, like automotive, aerospace, mechanical engineering and construction.
By combining its advanced steel products with a customer-oriented business model and by developing new products in partnership with its customers, the company aims to raise the share of "differentiated" products sales within its portfolio by over 50 percent between now and 2016.
Tata Steel Europe website
0 comments:
Post a Comment