Corus boosts profits in 2004

Corus boosts profits in 2004

Preliminary results of Corus for 2004 indicate that the Anglo-Dutch steelmaker recorded operating profit of £627 million ($1.2 billion) compared to a £66 million ($126.7 million) loss in 2003. The company cites extremely favorable market conditions and the group’s ‘Restoring Success’ program for the improvement in the bottom line. The group posted remarkable growth in its three steel divisions, with a 19% year-on-year increase in turnover even though sales volume remained the same as 2003’s at 21 million tons. The closing of the heavy section mill at Scunthorpe was the only major item that ate into the group’s revenues. The group managed to record profits despite large increases in coking coal, iron ore and scrap prices. The strong global demand for steel in 2004 allowed the company to raise prices and recoup its increased production costs. The group’s Restoring Success program deals with the selling off the group’s non-core assets and perfecting the core assets. As a part of the program, the group plans to spend £210 million ($403.2 million) on existing initivatives, £120 million ($230.40 million) on UK restructuring and £350 million ($672 million) on new initiatives by the end of 2006.