This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-37338463

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
UK costs weigh on Tata Steel results Scunthorpe sale costs hit Tata Steel
(about 1 hour later)
Tata Steel has slumped to a net loss of 31.8bn rupees (£358m) for the three months to 30 June. Costs related to the sale of its Scunthorpe operations pushed Tata Steel into the red for its first quarter.
That was 1.4bn rupees lower than the loss reported for the previous quarter by the Indian company. The Indian company lost 32.9bn rupees (£370m) when it sold its European long products division, based in Lincolnshire, to Greybull Capital in April for a nominal sum.
Analysts had expected a profit of almost 1.9bn rupees for the period. Tata Steel made a net loss of 31.8bn rupees (£358m) for the three months to 30 June.
A 32.9bn rupee loss on discontinued operations, including those in the UK, was largely to blame for the poor performance. There was no update on the future of the company's Port Talbot plant.
Tata sold its European long products division based in Lincolnshire to Greybull Capital during the quarter for a nominal sum. Tata Steel's overall loss was 1.4bn rupees lower than the loss reported for the previous quarter, but analysts had expected a profit of almost 1.9bn rupees.
It still owns the Port Talbot steel works in Wales, which employs more than 4,000 workers, and some 2,000 more at other plants in Hartlepool, Rotherham and Stocksbridge. Koushik Chatterjee, group executive director, said the company's recent restructuring and cost-cutting in the UK, along with weaker sterling, had helped the business to report better performance for the quarter.
Following the sale of the long products business, Tata Steel Europe would focus on being a premium strip player and would also concentrate on improving its performance. "The strategy for exploring further strategic consolidation in Europe is a step in that direction," he said.
The company warned that the Brexit vote could affect economic growth in the UK, adding: "The weaker pound is expected to improve UK's short-term competitive position on exports, however it will add cost pressure due to higher cost of raw materials purchased in US dollars."
Tata still owns the Port Talbot steel works in Wales, which employs more than 4,000 workers, and some 2,000 more at other plants in Hartlepool, Rotherham and Stocksbridge.
After saying in March that it would sell some or all of its remaining UK business, Tata announced in July that it was putting that process on hold while it pursued a European tie-up.After saying in March that it would sell some or all of its remaining UK business, Tata announced in July that it was putting that process on hold while it pursued a European tie-up.
One of the biggest stumbling blocks to the sale of the UK business has been the legacy of the British steel pension fund that Tata inherited when it bought the business in 2007. The fund has 130,000 members and a deficit of £700m.One of the biggest stumbling blocks to the sale of the UK business has been the legacy of the British steel pension fund that Tata inherited when it bought the business in 2007. The fund has 130,000 members and a deficit of £700m.
Tata said on Monday that talks about the pension deficit were continuing with all relevant parties including the UK Government, trustees and unions.Tata said on Monday that talks about the pension deficit were continuing with all relevant parties including the UK Government, trustees and unions.
Koushik Chatterjee, group executive director, said the company's recent restructuring and cost-cutting in the UK, along with weaker sterling, had helped the business to report better performance for the quarter.
Following the sale of the long products business, Tata Steel Europe would focus on being a premium strip player and ways to improve performance. "The strategy for exploring further strategic consolidation in Europe is a step in that direction," he said.
The company warned that the Brexit vote could affect economic growth in the UK, adding: "The weaker pound is expected to improve UK's short-term competitive position on exports, however it will add cost pressure due to higher cost of raw materials purchased in US dollars."