Plans and interim report on financial results of Corus
One of the leading steel producers in the world, the Anglo-Dutch group Corus announced a £36 million operating loss in the interim report released yesterday regarding financial results for the first half ending on June 28, 2003. This figure, representing a 86% downfall in loss compared to same recorded in the corresponding period in 2002, is attributed to 13% growth in turnover at around £4 billion due to higher prices and volumes. It is also stated that in order to improve efficiency, reduce costs and make profit their aim is to keep on making progress and restructure UK operations. In line with this target, first phase of the recovery programme with an estimated cost of £90 million is reportedly launched yesterday. The necessary financing of the first phase is planned to be partly funded by asset sales. This programme, includes a considerable investment in engineering steels which are high grade steels used in certain markets, such as automotive. Furthermore, under the framework of the plans, steelmaking plant and rolling mill in Stockbridge, South Yorkshire is going to be shut down, while finishing and processing operations will go on. However, hard market conditions foreseen do drag results of further improvements into an uncertainty.