Corus cuts losses

British steelmaker Corus reported a “substantial improvement” in full-year results today after annual losses narrowed to £305m (€453m).

The group, which was formed through the merger of British Steel and Dutch-based Hoogovens in 1999, said it had benefited from the global recovery in steel prices, as well as from a better manufacturing performance.

Corus also cut 1,800 jobs during the year, taking employee numbers down to 49,400 at the start of 2004.

Most of its steel production is focused on three UK sites, Port Talbot in South Wales, Scunthorpe in North Lincolnshire and Rotherham in Yorkshire.

Today’s losses compare with a figure of £458m (€681m) last year – a performance that led to the resignation of chief executive Tony Pedder.

His successor, Philippe Varin sounded a more upbeat note today, adding that, on balance, the company was more confident about the outlook for 2004.

The results show turnover rose 11% to £7.95 billion with the increase primarily due to higher volumes and prices in carbon steel. At an operating level, losses narrowed to £66m (€98m) from £393m (€584m) a year earlier.

Despite the progress, uncertainty still surrounds the future of the company’s Teesside plant, which has been deemed surplus to requirements following the company’s decision to focus on carbon steel products.

Corus said it was continuing its efforts to refocus the site as a stand-alone slab exporter, possibly through a joint venture.