Tata Steel posts profit rise despite UK crisis
India-based steel giant Tata has posted an increase in profit of 22 per cent to 15.29bn rupees (£152m) for its third quarter compared to the previous year.
The rise in profit comes just weeks after 1,200 jobs in the UK were cut and plants shut down due to an industry supply crisis and falling raw material prices.
Results over the last quarter were given a boost by asset sales of 28bn rupees.
Earnings for the year so far are not as rosy, however.
For the first six months of the year pre-tax profit fell by 21.6 per cent to £301m.
Meanwhile, half-year revenues fell by 17 per cent to 596bn rupees for the six months to the end of September.
Total steel deliveries across the group fell 300m tonnes over the half year to 12.62bn.
The company has warned that market conditions in the UK have become “significantly worse” during its second quarter due to tanking commodity prices and a glut of Chinese imports.
Tata said it has been forced to take an impairment charge, restructuring charges, and other provisions costing it 87bn rupees due to the "rapid and sharp deterioration" in the British business environment.
Karl-Ulrich Köhler, MD & CEO of Tata Steel in Europe, said: “We have made three restructuring announcements in the UK since July leading to reduced volume and costs.
“We are working with the UK government to urgently secure a more competitive trade and regulatory environment and we will support our employees affected by restructuring,” he added.
Tata Steel has been cutting jobs in the UK since it bought Anglo-Dutch producer Corus in 2007.