鈥楻estoring Success鈥� initiative lives up its name as it creates 拢120 m profit.
The Corus Group has seen group operating profit more than double, rising to 拢483 m for the first six months of 2005. Turnover for the period was 拢5.3 bn, with pre-tax profits of 拢435 m, up from 拢156 m for the first six months of 2004.
External turnover increased as the group benefited from higher average steel selling prices, more than off-setting an 8% reduction in deliveries, which Corus says is a result of poor market conditions. It said that its vastly improved operating profit was largely down to 鈥楻estoring Success鈥� 鈥� a business turnaround initiative to deliver EBITDA (Earnings before interest, tax, depreciation and amortization) benefits 鈥� which accounts for some 拢120m, or 35% of the increase.
Looking to the future, Corus said that weak apparent demand in Europe had created downward pressure on selling prices, and that it had reduced steel production in response to this.
Chief executive Philippe Varin said: 鈥淐orus has delivered a strong financial performance in the first half of 2005, despite the more challenging market conditions. Restoring Success remains on track and provides a firm foundation going forward.鈥�
