Surge in global steel prices leads Corus to first profit
Anglo-Dutch steel producer Corus, this week is expected to report its first pre-tax profit since it was established five years ago as a result of the 1999 merger between British Steel and Dutch steel group, Hoogovens.
Since its formation in 1999, Corus has accumulated a huge loss of £2.7 billion, as a result of intense competition from low-cost producers in Asia and
South America.
However, with the help of surging world steel prices and the turnaround plan implemented by CEO Philippe Varin, the company's financial health is returning to stable levels.
On Thursday of this week, Corus is expected to report an interim pre-tax profit of about £90 million, compared with a £90 million loss for the same period last year. Operating profits are expected to be slightly higher than the £125 million issued by the company earlier this year.
Moreover, Corus's return to financial stability is unlikely to lead to a reversal of its decision to sell its Teesside plant, which is up for sale. Market sources report that the company is not in a rush to sell the plant, and that it will continue to support the company's South
Wales operations until the end of next year.
Three foreign companies,
Korea's Dongkuk,
Brazil's CSN and Sumitomo Metal of
Japan have been mentioned as possible buyers.