Anglo-Dutch steelmaker Corus reported Thursday the first profit since its birth in 1999 thanks to cost cuts, rising metals prices and strong demand, notably from China.
Corus posted a pretax profit of 163 million pounds (239 million euros, 290 million dollars) in the first half of 2004 compared with a loss of 89 million pounds in the same period of the previous year.
The company posted an operating profit before restructuring and impairment costs of 160 million pounds in the six months to July 3 from a loss of 36 million a year earlier.
Corus, created in 1999 from the merger of the formerly state-run British Steel and Dutch firm Hoogovens, has cut tens of thousands of jobs in recent years in an effort to restore profitability.
The company has also benefited from strong demand for steel. "The world steel market has experienced significant change over the last year, stemming largely from the continuing rapid growth of the Chinese economy," Corus said.
Chinese demand for steel in the first half of 2004 increased by about 15 percent from the equivalent period of 2003, representing over 25 percent of world demand, it added.
Looking ahead, the group said the global balance of supply and demand in the steel industry remained tight and it expected continued improvement in operating profits and margins.
Corus chief executive Philippe Varin said: "The substantial improvement in our performance in the first half of the year reflects a combination of benefits from our actions... and positive market fundamentals."