Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / Tata Steel Europe CEO Karl Koehler steps down
BackBack

Tata Steel Europe CEO Karl Koehler steps down

Hans Fischer, currently chief technical officer of Tata Steel Europe, will be appointed as the new CEO

A file photo of Karl Koehler, chief executive officer and managing director of Tata Steel Europe. Photo: BloombergPremium
A file photo of Karl Koehler, chief executive officer and managing director of Tata Steel Europe. Photo: Bloomberg

Mumbai: Tata Steel Ltd on Wednesday said Karl Koehler, chief executive officer (CEO) and managing director of Tata Steel Europe, has decided to step down.

“Karl Koehler has decided to step down as a director of Tata Steel Limited and as Chief Executive Officer and Managing Director of Tata Steel Europe so he can take up a senior leadership position with a large privately-owned industrial company in Germany," Tata Steel said in a statement to BSE.

The company added that Koehler will be with Tata Steel for a short period in an advisory capacity.

Hans Fischer, currently chief technical officer of Tata Steel Europe, will be appointed as the new CEO and will join the board of Tata Steel Europe in March 2016, according to the statement.

Tata Steel’s executive director Koushik Chatterjee will be the executive director for Europe in addition to his current responsibilities, the company said.

Fischer will report to the board of Tata Steel Europe and will seek advice and guidance relating to the business from Chatterjee, according to the statement.

Tata Steel and other makers of the alloy have been battling a decline in global demand and competition from cheap imports that have hurt sales and profit.

Tata Steel expanded to Europe with the 2007 purchase of Corus Group Plc. In the nine years since the acquisition, Tata Steel has taken impairment charges adding up to almost $3 billion and analysts expect more to come, Mint reported on 17 February.

This is close to one-fourth of the $12.9 billion it spent to acquire the Corus steel assets.

In the December quarter, Tata Steel reported an exceptional loss of 711.77 crore, of which 615.39 crore was due to restructuring and other provisions related to the European operations; 72.11 crore was the cost of a write-down of fixed assets in Europe.

The exceptional loss on account of the European operations was the second consecutive one to be reported in the current fiscal year and the third in the last four quarters.

In the September quarter, Tata Steel reported a write-down of 7,771.78 crore as an impairment loss in its Strips UK business, Speciality and Bar Mill and other units in Europe.

Operational conditions across the European business continue to be weak. Tata Steel reported an Ebitda (earnings before interest, taxes, depreciation and amortization) loss of 339 crore at its European operations for the nine-month period ended 31 December 2015.

ICICI Securities Pvt. Ltd, in a report dated 8 February, revised its earlier assumption of a $15 Ebitda per tonne for Tata Steel Europe to a negative $8 Ebitda per tonne for the current fiscal year.

“Steel demand in the European Union (EU) is expected to grow 1.1% in 2016 in line with steel using sector activity. A significant part of the increase is expected to continue to be supplied by imports," ICICI Securities said in its report detailing the troubles that continue to plague metal firms operating in Europe.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 24 Feb 2016, 07:21 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie