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Corus posts half-year loss
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June 26, 2000: 8:12 a.m. ET
British steel company hit by strong pound, stock price dented
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London (CNNfn) - British steel maker Corus Group Plc on Monday posted a net loss for its fiscal first half that was little changed from the deficit a year earlier, as the negative impact of a strong pound offset the boost from last year's purchase of a Dutch rival.
Corus, formed last October when British Steel merged with Netherlands-based Hoogovens, said its net loss was £156 million ($234 million), or 5.04 pence a share. It said British Steel's loss in the same period a year earlier had been £160 million, or 8.08 pence, but didn't publish any figures showing how the enlarged company would have performed if it had been in existence in the prior-year period.
The pretax loss was £113 million, compared to a loss of £250 million for British Steel in the comparable period last year. Analysts predicted a pre-tax loss of between £120 million and £180 million. 
Shares of Corus (CS-) dropped 4.2 percent to 97.25 pence shortly before noon in London trading Monday following the report.
Corus Chairman Brian Moffat said the first half had brought improving trends in demand and prices for carbon steel, stainless steel and aluminum, particularly in the first quarter of 2000." He attributed the loss to "the adverse effects of the continued strength of the pound against the euro, combined with the impact of a number of operational problems".
The strong pound hurts Corus because it makes its exports from the U.K. more expensive for customers overseas. The company this month announced 1,400 job cuts, taking the number of planned reductions 2,200 positions.
Corus said it is confident that it was ahead of schedule in realizing the £200 million in annual cost savings that it first anticipated to see by 2002 as a result of last year's merger. The company said its carbon steel segment, which was particularly hard hit by the strong pound, appears solid for the coming months. 
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Corus Group
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