Anglo-Dutch steel group Corus today reported pre-tax losses of £230 million sterling in the first six months of the year.
The group said its operating loss of £200 million reflected further significant losses in carbon steel of £239 million and an operating profit of £36 million in aluminium.
The former British Steel complains sterling is significantly overvalued against the euro and offers no relief for British companies competing in international markets.
Analysts look for a reduction in the full year 2001 operating loss to around £350 million-£400 million.
The moves by the Bush administration to curb steel imports have also turned sentiment against the company and with imports from Russia and Japan still flooding the market the pricing environment looks weak.
Together with the continuing strength of sterling against the euro, this may force Corus to embark on another round of job cuts.
Last year, it cut over 6,000 workers to streamline production and last week warned its Dutch operations at Ijmuiden of plans to reduce the workforce by between 1,200-1,500 over the next few years.
PA