Tata Steel unexpectedly turns into loss in Q3
Tata Steel swung to an unexpected loss in its third quarter of Indian Accounting year ended on December 31st after raw material costs gained and demand and prices fell in Europe, its largest market.
The company posted losses of US$122 million, including that in unit Tata Steel Europe, compared with a profit of US$201 million in a year earlier.
The debt crisis in Europe, which contributes about two-thirds of the company’s output has reduced steel demand and prices.
Karl-Ulrich Koehler, the CEO of Tata Steel Europe predicted a difficult third quarter in last November.
The European unit, which buys all the raw material from outside suppliers, has faced an increase of 17% in coking coal prices, compared with a rise of 3.5% in the price of steel hot-rolled coils in the last quarter.
It’s known that the company has halted its hot strip mill in Newport and cut 115 jobs in last December.
Meanwhile, Tata Steel planned to add 2.9 million tons of annual capacity at its Jamshedpur facility this quarter, taking total production to 10 million tons.
News Date 10 Feb 2012 16:38:09 reported by Raul Lee