Demand grows: Tata Steels consolidates its quarterly profit
INDIA’S Tata Steel, the world’s seventh-largest steel maker, said yesterday its consolidated quarterly profit more than doubled as demand grew, but lagged behind forecasts as raw material prices rose. It said net profit rose to Rs10.03bn ($222m/£) for the three months to December, from Rs4.72bn ($105m/£64.98m) in the same period a year earlier. The earnings however failed to live up to the forecasts of analysts who expected the company to show a profit of near Rs11bn ($242m/£149.81m). Tata Steel, which bought British-Dutch company Corus for $13.7bn (£8.48bn) in 2007, said in a statement that sales rose 11 per cent to $6.5bn (£4.02bn). The data included financials of the Indian, south-east Asian operations and Corus. Steel deliveries fell 5.7 per cent to 5.68 million tonnes in the quarter, from a year earlier. Tata Steel’s European sales rose seven percent in the quarter to $4.01bn (£2.48bn), from $3.75bn (£2.32bn) a year earlier. Tata Steel Europe chief executive Karl-Ulrich Köhler said European operations were affected by high raw materials costs and seasonal factors. “We are gearing up to meet continuing market challenges by reinvigorating our strategy,” he said in a statement. In January this year, Tata Steel and Japan’s giant steel producer Nippon Steel Corp signed a deal for a venture to manufacture steel sheets for automobiles in eastern India.
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