Corus shows its mettle

Anglo-Dutch steel giant Corus overcame a difficult third quarter to record pre-tax profits of £580 million for 2005, up £13 million on the previous year.

The overall increase of 16 per cent in steel selling prices compared to 2004 offset a five per cent reduction in deliveries and the impact of higher raw materials and energy costs.

Corus also announced that it will dispose of its aluminium rolled products and extrusions businesses for £570 million to north American aluminium manufacturer Aleris International. The transaction also includes the company's equity stakes in its Canadian and Chinese joint ventures.

The company claimed its hugely improved financial position is underpinned by a restructuring programme called 'Restoring Success', launched in June 2003 when Corus was at a particularly low ebb. Comprising three initiatives it aims to implement more efficient and productive processes across the group.

The group said its strategy remains focused on carbon steels, developing a strong and sustainable competitive position in western Europe and securing access to steel making in lower cost, higher growth regions.