{"id":926601,"date":"2013-05-13T21:59:19","date_gmt":"2013-05-13T16:29:19","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=926601"},"modified":"2013-05-13T21:59:19","modified_gmt":"2013-05-13T16:29:19","slug":"tata-steels-1-6bn-writedown","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2013\/05\/13\/tata-steels-1-6bn-writedown\/","title":{"rendered":"Tata Steel’s $1.6bn writedown"},"content":{"rendered":"

Tata Steel<\/a> has announced a $1.6bn writedown on its struggling European division. Its European operations has been hit by the 30% fall in steel demand in the Eurozone\u00a0since the emergence of the global financial crisis in 2007. The company’s 2012 turnover was $26.13 billion, so the write-down is a pretty big deal.<\/p>\n

Europe’s steel industry woes are pretty well documented and its main steel trade association had urged a 25% cut in capacity<\/a> to remain relevant. However, closing steel plants are a challenge as\u00a0the sector is seen as strategically and symbolically important by politicians.<\/p>\n

In December last year, ArcelorMittal wrote\u00a0down the goodwill<\/a> in its European businesses by about $4.3 billion and\u00a0ThyssenKrupp wrote down<\/a> $4.7 billion of its Americas unit.<\/p>\n

Tata Steel is expected to announce its financial results on May 23rd. Is some “spring cleaning” in store as the new Chairman <\/a>takes over? (ET<\/a>, FT<\/a>)<\/p>\n

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