Corus expects to record first full-year profit

Corus expects to record first full-year profit

Corus Group Plc, the UK's biggest steelmaker, expects to report its first full-year profit after increasing prices four times since January. Company's operating profit will surpass £600 million in 2004 Corus recorded its first-ever first half profit in September as growing steel demand allowed European steelmakers to raise prices. The steelmaker announced an operating profit of £160 million in the first half. In addition, Corus' Teesside plant was repositioned as a slab exporter and has been selling its steel on the international market. However, the company has signed an agreement with a consortium of re-rolling companies to supply slab under a 10-year contract. In the scope of the agreement, which is effective from January 2, 2005, the consortium will take slab production in 2005 and 2006, which is surplus to Corus' internal requirements and then around 74% of output from the end of 2006. The companies in the consortium are Italian/Swiss-based Duferco, Marcegaglia from Italy and Mexican steel producer Imsa.