Tata (www.tata.com) reports that its European steel business is back in profit.

The Indian-owned group says that a combination of “operational improvements, currency movements, lower energy costs and stronger steel prices” helped its European division deliver £74 million of earnings before interest, tax, depreciation and amortisation in the third quarter of its financial year ending 31 December.

This compares with a £90 million loss a year earlier. However, turnover in the third quarter fell by £100 million year on year to £1.5 billion, while deliveries of steel fell by 13% to 2.4 million tonnes.

Hans Fischer, chief executive of Tata Steel Europe, said that a focus on higher-value products was partly behind the return to profit and that the company continues to focus on these as part of its on-going strategy.