Tata Steel net loss narrows as domestic, European sales grow

Tata Steel Q4 preview Here's what to expect
Tata Steel Q4 preview Here's what to expect Pan view of Tata Steel plant in Jamshedpur
Author

17 May, 2017

Tata Steel Ltd posted a surprise fourth-quarter loss after the company recorded a 36 billion rupee (RM2.4 billion) charge related to the closure of its British pension plan.

The strong fourth quarter helped the business generate earnings of £526 million for the last 12 months, compared to a £52 million loss the year before, with stronger market conditions and tailwinds from the fall in the value of sterling, which makes British exports cheaper overseas.

The steel company's accounts for the year to 31 March 2017 - published on the Indian Stock Exchange today - said that after "prolonged and intense" negotiations with the BSPS Trustee, the Pensions Regulator (TPR) and the Pension Protection Fund (PPF) a deal in principle had been reached between Tata Steel UK and the BSPS Trustee. Standalone revenue rose 45.9% (y-o-y) to Rs 17,113 crore while profit rose 172% (y-o-y) to Rs 1,415 crore.

Indian steel companies such as Tata Steel are limping back to profitability after incurring losses for almost two years due to a sharp drop in worldwide prices amid a supply glut from China and muted demand in the domestic market.

Also, Tata Steel said on Tuesday that key commercial terms of a deal to spin off its giant United Kingdom pension scheme into a standalone entity and end its liabilities for the scheme have been agreed with the scheme's trustees.

Emma Watson Praises Genderless MTV Awards After 'Beauty' Win
Then, pretending to turn on the waterworks, she said, "I shouldn't get emotional again because I, like, broke down in my speech". Another English actress, Millie Bobby Brown , 13, won the best actor in a TV show award for the sci-fi show " Stranger Things ".

April retail sales data issued by Commerce and NRF heads up
Meanwhile, sales at sporting goods and hobby stores accelerated by 0.6% in the month, although declined 2.4% on the year before. But many forecasters predicted household spending would bounce back this spring, based on underlying health in the economy.

ICE Arrests 1378 Suspected Gang Members, Largest Gang Sweep Conducted Ever
Of them, 112 are gang affiliates, meaning that ICE had verifiable information that the person was associated with a gang. In February, ICE said enforcement actions then were planned before Trump's executive orders on illegal immigration.

The British Steel Pension Scheme is one of Britain's largest final salary schemes with 130,000 members.

EBITDA in Europe for the last financial year was £536 million (₹4,705 crore), compared to the loss of £52 million (₹513 crore) in FY-16, due to stronger market conditions, currency tailwinds and restructuring of United Kingdom operations. It is subject to formal approval by The Pensions Regulator, but Tata said it expected to get approval shortly.

However, unions said that a year ago, when they backed Tata Steel's turnaround plan, they were assured that members of the pension fund would be given a choice between a PPF deal or a move to a new, modified scheme. Tata Steel said it spent Rs 7,700 crore on capex during the year.

"Although the PPF is an important safeguard for pension schemes generally, the Trustee believes that the BSPS has sufficient assets to offer members the potential for better outcomes by enabling them to transfer to another scheme offering modified benefits".

This new scheme must be delivered and we will be seeking further assurances to ensure that this regulated apportionment arrangement announcement leads to the choice that our members expect.


More news


  • US spat erupts ahead of Trump visit to region

    Following that line, Trump wants to signal to the American Jewish community his resolute commitment to Israel's security. At this stage, he will work out of the US Embassy in Tel Aviv and will live in the ambassador's residence in Herzliya.
    Scream Queens Cancelled by Fox

    Scream Queens Cancelled by Fox

    Despite noise in January that the show would still be up for renewal, the writing remained written in blood on the wall. According to E! New, it looks like Scream Queens fans no longer have to wait to learn the fate of their series.

    Yankees to honor Jeter between games of doubleheader Sunday

    And I say this very humbly, there isn't a person or player I would trade places with that's playing now or ever . Then it will turn out that Jeter didn't retire the captaincy of the Yankees the way he ultimately retired No. 2.
  • Singapore sovereign fund GIC pares UBS stake at a loss

    Singapore sovereign fund GIC pares UBS stake at a loss

    Yet these are hardly rich pickings, especially for sovereign wealth funds, whose goal is enrich their countries. That equates to a current loss of 4.1 billion Swiss francs from its investment, according to IFR calculations.
    Top Baby Names: Emma, Noah Reign; Caitlyn Plunges Out of Top 1,000

    Top Baby Names: Emma, Noah Reign; Caitlyn Plunges Out of Top 1,000

    For boys, the top picks are Noah (which is the top boy's name four years running), Liam, William, Mason, and James. The most popular 21st century names for girls before 2014 were Sophia, Isabella and Emily.
    Hit-and-run suspect was deported 15 times in 15 years

    Hit-and-run suspect was deported 15 times in 15 years

    Lennox Lake's parents didn't go to court for the arraignment, preferring to stay at their son's side at Rady Children's Hospital. Six-year-old Lennox and his family were driving back from Disneyland when things took a turn for the heartbreaking.
  • Jerusalem's alleged attacker reported 57-year-old Jordanian citizen

    On Friday, Israeli forces shot dead a Palestinian youth and wounded more than 10 others during clashes in the occupied West Bank. Israel has blamed the violence on incitement by Palestinian political and religious leaders compounded on social media sites.
    Michelle Obama criticizes Trump school lunch decision

    Michelle Obama criticizes Trump school lunch decision

    She bashed critics who complain that kids don't like the healthier school meals implemented during the Obama administration. Additionally, he also noted that he will keep issuing waivers that require more whole grains to be served at schools.
    Suspect dead, K-9 recovering after shootout

    Suspect dead, K-9 recovering after shootout

    Three deputies who fired their weapons were placed on administrative leave while the FDLE investigates. That officer has already been released from the hospital, the sheriff's office said.
  • Trump asked Comey to shut down Flynn investigation

    Despite Trump's plea to the ex-FBI director, the probe into Flynn's ties to Russian Federation continued. An unnamed source also told CNN Comey was "so appalled by the request that he wanted to document it".

    Healthy SC teen dies of heart problems after too much caffeine

    Coroner's Association. "I stand before you as a brokenhearted father and hope that something good can come from this", Cripe said. Based on Cripe's weight, Watts says the amount of caffeine consumed was above what is considered a "safe limit".

    SKorea: Rival N.Korea launches possible ballistic missile

    North Korea launched a ballistic missile from the northwestern part of the country early Sunday, the South Korean Joints Chief of Staff said .