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Corus on the comeback: Britain's Corus Group has made a remarkable financial recovery in the past few years and appears poised to strengthen its position in Europe with the help of new enterprise management software from Invera.

Article Excerpt
ON THE BRINK OF FINANCIAL DISASTER just a few years ago, Britain's Corus Group plc has achieved a major turnaround and, as a recent acquisition of India's Tata Steel, finds itself at the core of steel's globalization.

"Five years ago we were in a pretty serious position, in a survival mode," says David Bright, IT director for Corus Distribution & Building Systems in Wolverhampton, England. However, under the leadership of CEO Philippe Varin, former head of French aluminum producer Pechiney, the company has returned to profitability.

Reporting net losses of 419 million pounds in 2001, 458 million in 2002, and 305 million in 2003 (roughly $840 million, $920 million and $610 million U.S. at the current exchange rate), the company rebounded along with the economy in 2004, posting a 17 percent improvement in net operating revenues and a net profit of 440 million pounds ($880 million U.S.). Revenues grew by another 8 percent in 2005, but dipped by 4 percent last year while profits moderated to 229 million pounds ($458 U.S.) in 2006.

Corus was formed by the merger of British Steel and Dutch steelmaker Koninkliike Hoogovens NV in October 1999. The company was subsequently taken over this April by Tata Steel, which spent about $11.3 billion to outbid Brazil's CSN.

Company officials claim the combination of Tata Steel and Corus creates the world's sixth largest and second most global steel producer with a presence in 50 countries, 84,000 employees and total annual crude steel production of 27 million metric tons. Tata Steel's access to raw materials and its strong presence in Asia promises to help Corus lower its cost of steel production and expand its market reach, while Corus brings leadership of the UK and Western European markets and additional expertise in processing, fabrication and distribution to its new parent.

Ratan Tata, chairman of Tata Steel, reportedly considered his successful bid for the Anglo-Dutch steelmaker a source of national pride for India. But observers question whether Tata has bitten off more than it can chew, and whether synergies between the two companies will ultimately justify the high price tag.

Corus operates mills in the UK, Netherlands, Germany, France, Norway and Belgium, and sales offices and service centers in over 40 countries. With annual revenues around $19 billion, the company is comprised of four divisions: Strip Products, Long Products, Distribution & Building Systems and Aluminum. Its aluminum division largely supports its building products operation since the August...

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