Latest news with #Corus
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Business Standard
2 days ago
- Business
- Business Standard
Port Talbot's green furnace marks end of costly firefighting for Tata Steel
In July 2022, Tata Group Chairman Natarajan Chandrasekaran told the Financial Times that transition to green steelmaking hinged on the British government's support. Talks had been going on for two years, and the writing was on the wall: Without a deal within the next 12 months, the plant, Port Talbot, would close down. Port Talbot, Tata Steel's upstream steelmaking facility in South Wales, had largely been a drag on the company's bottom line since it acquired Anglo-Dutch steelmaker Corus in 2007. Government support was crucial as cash flows from the business fell short of funding the capital-intensive transition. Cut to July 14, 2025. An impassioned Chandrasekaran, while flagging off the construction of the electric arc furnace (EAF) at the plant, spoke of the ups and downs the site had faced. 'Many people, many naysayers probably thought that this day would not come. And that's why it's important,' he said. 'We got a job in hand, we got to execute. We are super committed to this project. That's why I wanted to be here today to show my personal and the Tata group's commitment.' Meltdown to makeover The EAF at Port Talbot brings the curtains down on carbon-intensive blast furnace (BF) steelmaking at the site and paves the way for low-carbon steel production. The heavy-end assets were at the end of life and carbon costs on the blast furnace process were high. The transformation, however, impacts close to 2,500 jobs, even as it secures 5,000. The BFs were decommissioned by the end of September 2024, a first on such a scale in the history of the company. Last week, as construction of the EAF kicked off, the steelworkers' union described it as a 'bittersweet' day. While it looked at it as a consequence of the devastating closure of the blast furnaces, it also acknowledged that a future for Port Talbot steelmaking was now secured. Getting to this point wasn't easy. From securing union support to navigating government negotiations, it was a web of complex stakeholder management. Years in the making The transformation to low-carbon steelmaking involves an investment of £1.25 billion. The UK government is backing the project with £500 million — the funding came through after a stretch of political churn in Westminster. Discussions for the support began under Prime Minister Boris Johnson. Till the time the deal was signed and sealed, the UK had cycled through another three prime ministers. In September 2023, Tata Steel and the Rishi Sunak-led Conservative UK government had agreed on a grant of £500 million. But in the July 2024 general elections, the Labour party landed a historic win, putting a question mark on the funding and the future of Port Talbot. The lifeline When Tata Steel acquired Corus in a £6.2 billion deal in 2007, it gained two key steelmaking sites: Port Talbot and IJmuiden in the Netherlands. The latter has been largely self-sustaining, whereas the structurally weak UK operations demanded substantial capital. Tata Steel disclosed in January 2024 that since the Corus acquisition, it had put in £6.8 billion in the UK towards improving steelmaking operations and processing sites, covering financial losses, pension restructuring costs, and providing additional capital support to service Tata Steel UK's share of debt. The closure of heavy-end assets at Port Talbot is expected to bring down the losses. The 3.2 million tonne (mt) EAF will be commissioned by the end of 2027. Downstream customers are currently being serviced with slabs from India, the Netherlands, and even the open market, reducing fixed cost. Arresting the drain The task before Tata Steel's management is clear, and the goal firmly defined. At its annual general meeting on July 2, Chandrasekaran told shareholders that the company was working towards becoming profit after tax (PAT)-positive. 'Losses in the UK will be wiped out. And going forward, this year or the next, it will become PAT-positive,' he said. The first step, however, could be to make it positive or neutral in terms of earnings before interest, tax, depreciation, and amortisation (Ebitda) this year. In FY25, UK Ebitda loss stood at £385 million. In a credit rating report dated June, Icra noted: 'Within the European operations, the UK assets were a weak link in terms of their cost position.' However, the EAF transformation will significantly improve the cost position of the UK asset and will, hence, arrest the drain in the company's consolidated earnings, it said. 'The UK operations have cost Tata Steel a lot over the years — in terms of management bandwidth and financial capital,' said Tushar Chaudhuri, research analyst, PL Capital (Prabhudas Lilladher). 'The leakage to earnings in the UK that impacted Tata Steel's consolidated balance-sheet should now stop. And the Netherlands operations are expected to perform much better this year, post the relining of the blast furnace. Over the next two quarters, Tata Steel's European operations should be Ebitda-positive.' Dutch support In the UK, Tata Steel is already on the road to decarbonisation. In the Netherlands, the plans are still in motion. The plan for the Dutch operations is to replace one of the two blast furnaces and coke ovens with direct reduced iron and EAF-based production by the end of the decade. Meanwhile, external vulnerability has prompted Tata Steel to review costs across regions as part of a transformation programme: A multi-pronged approach of maximising production efficiencies, lowering fixed costs, and optimising product mix and margins. In the Netherlands, Tata Steel plans to cut 1,200 jobs in phases as part of this exercise. But the cost-cutting drive is not just limited to the high-cost European outposts. Forging ahead Over the next 12 to 18 months, Tata Steel has set a cost takeout target of ₹11,500 crore across regions: India, the UK, and the Netherlands. In FY25, the cost takeout had stood at ₹6,600 crore versus FY24 levels across units. Rising geopolitical tensions, volatile steel prices, and impending auction of legacy iron ore mines in 2030 are among the challenges that are largely beyond Tata Steel's control. So it is focusing on what it can control — resetting its cost structure. On the cost takeout, Amit Lahoti, senior research analyst — Institutional Equities at Emkay Global, however, said, 'It is difficult to assess how much of the cost takeout will ultimately flow to the Ebitda. There are too many moving parts, such as steel prices and market conditions.' The company will also benefit from the expanded 5 mt capacity at Kalinganagar, Odisha, adding to its top and bottom line – with some of the additional volumes flowing in FY26. As things stand, the years of struggle with European business appear to be fading, new capacity is set to generate cash, and efforts to rein in expenses are gaining momentum. Could this be a new chapter in the century-old steelmakers' story?
Winnipeg Free Press
11-07-2025
- Business
- Winnipeg Free Press
Corus to stop distributing Nickelodeon, four other kids' entertainment channels
Corus Entertainment Inc. plans to wind down five kids' channels later this summer as the broadcaster continues to cope with advertising revenue challenges. The company says in a statement it will stop distributing ABC Spark, Nickelodeon, Disney French (La Chaine Disney), Disney XD and Disney Jr. channels as of Sept. 1. A spokesperson says the move comes after a 'comprehensive review' of Corus' portfolio of channels surrounding the 'evolving needs of our audiences and distribution partners.' Corus says it will still operate the Disney Channel across its TV and streaming platforms. Last month, the company said it slashed seven per cent of employee costs in its most recent quarter and was continuing to look for savings amid an advertising revenue slump. Chief executive John Gossling told analysts that Corus anticipates TV advertising revenue to decline about 20 per cent year-over-year in the current quarter as 'geopolitical and economic uncertainty' linger. Monday Mornings The latest local business news and a lookahead to the coming week. This report by The Canadian Press was first published July 11, 2025. Companies in this story: (TSX:CJR.B)
Hamilton Spectator
26-06-2025
- Business
- Hamilton Spectator
Corus Entertainment cuts employee costs by 7% in Q3 as TV revenue struggles continue
TORONTO - Corus Entertainment Inc. slashed seven per cent of employee costs in its most recent quarter, as the company says it will continue to look for savings amid an advertising revenue slump. The radio and television broadcaster said Thursday that job losses were part of its overall nine per cent reduction in general and administrative expenses during its third quarter, which totalled $10 million in cost savings. It said it expects to lower general and administrative expenses by 10 to 15 per cent in its fourth quarter compared with the prior year. 'At a high level, the advertising environment remains very challenging, characterized by ongoing uncertainty in the economic environment, an oversupply of digital inventory from foreign competitors, and generally, lower advertising demand on linear television,' Corus chief executive John Gossling told analysts on the company's third-quarter earnings call. The company said it anticipates TV advertising revenue to decline about 20 per cent year-over-year in the fourth quarter as 'geopolitical and economic uncertainty' linger. Gossling, who assumed the solo CEO title earlier this month when co-CEO Troy Reeb stepped down, called Corus' revenue outlook 'quite stressed.' 'We are seeing advertising investment decisions being made increasingly closer to campaign launch or paused completely as companies await clarity, whether it be on potential supply chain disruptions or consumer confidence impacts on their business,' he said. Gossling added some advertisers are also shifting their buys to platforms beyond traditional television. 'It's a pretty tough market generally out there,' he said. 'We haven't seen this kind of impact since COVID. So it's definitely hurting the economy more than it's appearing to.' Corus reported a loss attributable to shareholders of $7.3 million in its third quarter as its revenue fell 10 per cent compared with a year ago. The loss amounted to four cents per diluted share for the quarter ended May 31. The result compared with a loss of $769.9 million or $3.86 per diluted share in the same quarter last year when Corus took a $960-million non-cash charge. Revenue totalled $297.8 million, down from $331.8 million a year ago. TV revenue amounted to $274.5 million, down from $308.2 million, while radio revenue was $23.3 million, down from $23.6 million. Gossling pointed out some reasons for optimism, including an advertising revenue boost from the federal election last quarter, along with a recent CRTC decision that confirmed Corus' eligibility to receive funding from the Independent Local News Fund. However, the company is awaiting details on how much financial assistance it will be able to get. Despite the challenging economic conditions that he described affecting the entire broadcasting industry, Gossling acknowledged Corus' especially dire situation. He said the company's challenge is figuring out, 'How do we get to a place where we're not underperforming the market?' 'We've learned over time that what we're seeing is basically ... our reliance on linear is definitely putting us in a tougher spot,' he said. 'We do have digital products, but they're also feeling the pressure. So yeah, I wouldn't necessarily imply that the entire advertising market is seeing the kind of pressure we're seeing, but we're absolutely feeling it.' On an adjusted basis, Corus said it earned six cents per share in its latest quarter compared with an adjusted loss of 10 cents per share a year ago. Analysts on average had expected a loss of five cents per share, according to LSEG Data & Analytics. RBC analyst Drew McReynolds said results for the quarter were ahead of forecast mainly due to strong TV margins while the company's fourth-quarter outlook for TV advertising was lower than analyst projections. 'We view the better results but more challenged outlook as largely neutral to a modest positive for the shares at current levels,' he said in a note. This report by The Canadian Press was first published June 26, 2025. Companies in this story: (TSX:CJR.B)
Winnipeg Free Press
26-06-2025
- Business
- Winnipeg Free Press
Corus Entertainment reports $7.3M Q3 loss, revenue down 10 per cent from year ago
TORONTO – Corus Entertainment Inc. reported a loss attributable to shareholders of $7.3 million in its latest quarter as its revenue fell 10 per cent compared with a year ago. The radio and television broadcaster says the loss amounted to four cents per diluted share for the quarter ended May 31. The result compared with a loss of $769.9 million or $3.86 per diluted share in the same quarter last year when Corus took a $960-million non-cash charge. Revenue for what was the company's third quarter totalled $297.8 million, down from $331.8 million a year ago. Television revenue amounted to $274.5 million, down from $308.2 million, while radio revenue was $23.3 million, down from $23.6 million. On an adjusted basis, Corus says it earned six cents per share in its latest quarter compared with an adjusted loss of 10 cents per share a year ago. Monday Mornings The latest local business news and a lookahead to the coming week. This report by The Canadian Press was first published June 26, 2025. Companies in this story: (TSX:CJR.B)
CTV News
16-06-2025
- Politics
- CTV News
Former MP Han Dong says he can move on after settling lawsuit against Global News
Han Dong appears as a witness at the Public Inquiry Into Foreign Interference in Federal Electoral Processes and Democratic Institutions, Tuesday, April 2, 2024, in Ottawa. THE CANADIAN PRESS/Adrian Wyld OTTAWA — Former MP Han Dong says he and his family can finally move on now that his lawsuit against Global News has been settled. A Global report in early 2023, citing unidentified sources, suggested Dong privately advised a senior Chinese diplomat to hold off on freeing Michael Spavor and Michael Kovrig, Canadians who were being detained in China. Dong left the Liberal caucus in March 2023 to sit as an Independent, adding he sought to clear his name after the emergence of those and other allegations related to foreign interference. He denied the allegations against him and filed a lawsuit against Global, its parent company Corus and several journalists over the story about Spavor and Kovrig. In a news story published Sunday, Global News quoted a statement from the media outlet saying Dong's lawsuit had been settled. The statement said Global News recognizes the findings of a federal inquiry into foreign interference — including the conclusion that classified information reviewed by Justice Marie-Josée Hogue corroborates the claim that Dong did not suggest that the Chinese government extend the detention of Kovrig and Spavor. In a statement posted Sunday on social media, Dong said the case is settled and 'finally my family and I can move on.' Dong said he owed a great debt of gratitude to lawyer Mark Polley and his team 'for their great work and to friends and family for sticking with us.' Polley did not respond to questions about the settlement, while a lawyer who represented Global in the case said he was unable to comment. Corus spokesperson Melissa Eckersley said Monday in an email the Global News story about the settlement 'contains the statement and any other information we are able to share on the matter.' This report by The Canadian Press was first published June 16, 2025.
