Corus in 52% profits drop

By THIS IS MONEY
Updated:

 

ANGLO-DUTCH steelmaker Corus's second-quarter operating profit dropped 52% to £129m from £267m a year earlier.

Chief executive Philippe Varin said the high cost of iron ore and energy and lower selling prices caused the fall in the three months to 30 June.

Earnings before tax dropped 44% to £193m from £347m. But the results were up on the first quarter when operating profit was £80m without a non-recurring pensions hit. The interim dividend rises 10% to 2.75p.

Corus has become a focus of takeover speculation after a wave of activity in the sector. Evraz, Russia's largest steel producer, has been tipped as a potential bidder.

Varin is seeking deals in low-cost, high-growth countries to give Corus access to raw materials such as iron ore.

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