Tata return to profit for third quarter
8 Feb 2017
Reduced energy bills and higher steel prices have contributed to Port Talbot owner Tata getting back into profit.
Last year the company reported third quarter losses amounting to some £90 million. This year its European arm alone produced nearly £75 million in earnings before interest, taxation and other elements.
While changing global circumstances have contributed to the turnaround, a spokesman pointed out that the company had increased its focus on high value products.
While the latest financial results will come as a relief to employees in Port Talbot and other works owned by Tata, the company still faces ongoing challenges attached to the sale of part of the UK business.
Having sold its Scunthorpe holdings last year, the company is intending to sell its South Yorkshire site to the Liberty group and is discussing possible merger activities with ThyssenKrupp.
In addition the company is awaiting a vote by employees who are members of the Tata UK-linked pension fund on changes to the present setup. Trustees have warned the fund’s impending valuation could report a £1 billion deficit in the £15 billion scheme.
