Tata Steel Europe saw a difficult regional market adversely affect its results in the third quarter of parent company Tata Steel Limited’s 2020 fiscal year. Despite having increased its liquid steel production, revenues fell sharply and earnings slipped into the negative, according to the group’s quarterly operating report, monitored by Kallanish.
Liquid steel output by the Indian groups’ European segment grew by around 3% quarter-on-quarter to 2.51 million tons. Deliveries [… of finished steel] also grew by around 3% to 2.35m tons on the same basis.
Revenue from operations decreased however to INR 13,821 crore ($1.93 billion) primarily due to a sharp decline in European steel prices. This resulted in a loss at Ebitda level of INR 956 crores, itself primarily due to a £75/ton ($96.7/ton) decline in realisations, according to Tata Steel Limited cfo Koushik Chatterjee.
Tata Steel Europe is committed to making its operations, simpler, leaner and sustainable to ensure its long-term success, the group says. It has launched a transformation programme with “… an aim to become self-sufficient and cash positive,” the parent company adds.
The European operations also launched six new products in Q3FY20. These included a nickel-plated steel for battery makers, an automotive steel with improved corrosion resistance and a construction steel requiring less coating but still offering the same level of performance.