Corus Group plc Preliminary Report for the Year Ended 3 January 2004.Business Editors LONDON--(BUSINESS WIRE)--March 18, 2004 Corus Group Corus Group plc, normally referred to simply as Corus, is one of the world's largest producers of steel, headquartered in London. It was formed from the merger of Koninklijke Hoogovens N.V. plc (NYSE NYSE See: New York Stock Exchange :CGA (Color/Graphics Adapter) The first video display standard for the IBM PC. This low-resolution system was superseded by EGA and then VGA. CGA required a digital RGB Color Display monitor. See PC display modes. CGA - Color Graphics Adapter )(LSE LSE - Language Sensitive Editor :CS): Key financials 2003 2002 Year ended 3 January 2004 GBP m GBP m Turnover 7,953 7,188 Operating loss (before exceptional items) (66) (393) Group operating loss (208) (446) Loss for the year (305) (458) Earnings per share (restated) (1) (9.25)p (14.23)p Net debt at end of period (1,013) (1,236) -- 11% growth in turnover driven by both higher sales volumes and selling prices. -- Underlying pre-exceptional operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. reduced by GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 327m to GBP 66m. The Group operating loss amounted to GBP 208m (2002: GBP 446m). -- Higher turnover, together with improvements in manufacturing performance and cost efficiency, more than offset the rise in input prices. -- The principal items within the exceptional charge of GBP 142m relate to UK restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. . -- Net debt reduced to GBP 1bn and gearing down to 37%. Second half reduction of GBP 0.5bn, reflecting equity proceeds and reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of working capital build-up build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. in the first half. Restoring Success -- UK restructuring underway and on track. -- Restoring Success now embedded Inserted into. See embedded system. in business plans. -- Manufacturing excellence, purchasing and IT programmes launched. -- Uplift in capital expenditure to support new initiatives. (1) See page 12 for explanation of re-statement of earnings per share SUMMARY Operating highlights The results for 2003 showed a significant improvement over 2002 with a reduction in the Group pre-exceptional operating loss of GBP 327m to GBP 66m (2002: loss of GBP 393m). The Group operating loss was GBP 208m (2002: GBP 446m). The operating loss included exceptional items of GBP 142m (2002: GBP 53m), within which the principal items were provisions related to the Group's UK restructuring programme and asset impairment. Net debt reduced to GBP 1.0bn (2002: GBP 1.2bn) and translated into a gearing ratio Gearing Ratio A general term describing a financial ratio that compares some form of owner's equity (or capital) to borrowed funds. Gearing is a measure of financial leverage, demonstrating the degree to which a firm's activities are funded by owner's funds versus creditor's funds. of 37% (net debt/net tangible assets Tangible Asset An asset that has a physical form such as machinery, buildings and land. Notes: This is the opposite of an intangible asset such as a patent or trademark. Whether an asset is tangible or intangible isn't inherently good or bad. )(1)(2002: 46%). The reduction largely reflected the GBP 291m net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the equity placing and open offer. The second half year saw a reduction of some GBP 0.5bn in net debt compared to the first half and reflected the equity proceeds and a reversal in the working capital increase seen in the first half. The pre-exceptional operating loss in the first half amounted to GBP 36m, however, including exceptional items of GBP 21m, the Group operating loss was GBP 57m. The pre-exceptional operating loss reduced to GBP 30m in the second half, but including exceptional items of GBP 121m the Group operating loss amounted to GBP 151m. The improvement in the Group's result was entirely attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the carbon steel segment. This reflected the combination of: higher selling prices (inclusive of inclusive of prep. Taking into consideration or account; including. exchange rate gains from a weaker pound against the euro); increased sales deliveries; improved manufacturing performance, including the resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of a two blast furnace blast furnace, structure used chiefly in smelting. The principle involved in this means of extracting metals is that of the reduction of the ores by the action of carbon monoxide, i.e., the removal of oxygen from the metal oxide in order to obtain the metal. operation at Port Talbot Port Talbot (tôl`bət), town (1981 pop. 40,078), Neath Port Talbot, S Wales, at the mouth of the Avon (Afan) River on Swansea Bay. Port Talbot is a popular seaside resort. Nearby are the steelworks at Margam and the oil refinery at Baglan. , and increased output in IJmuiden IJmuiden (īmoi`dən), city (1991 est. pop. 58,000), North Holland prov., W Netherlands, on the North Sea. It is part of the municipality of Velsen. The city is a seaport, fishing, and industrial center at the end of the North Sea Canal. at both the steel plant and the Direct Sheet Plant; and benefits from on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" measures to improve cost efficiency. These positive factors more than offset the negative impact of increases in raw material and energy prices (which were only partly offset by the weaker US dollar against the pound) and inflationary in·fla·tion·ar·y adj. Of, associated with, or tending to cause inflation: inflationary prices; inflationary policies. Adj. 1. pressure on other conversion costs, including employment. The net loss after tax and minority interests amounted to GBP 305m (2002: GBP 458m) and translated into a basic loss per share of 9.25p (2002: (re-stated) loss of 14.23p). No final dividend will be paid. Restoring Success The three elements of the Restoring Success initiatives - Management & Leadership, Operational Performance and Financing are underway. Within Management & Leadership, five members of the executive committee are new in the last twelve months and a new division based organisational structure has been adopted. The Group will report in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the new structure in the 2004 accounts. Under Operational Performance, the UK restructuring programme is well underway. In terms of Financing, the successful equity issue, which was completed in December December: see month. , together with proceeds from the sale of surplus property and non-core assets, has enabled the Group to pursue the full UK restructuring programme. Looking forward The Group has confirmed its intention to focus on selected carbon steel products and has therefore entered into the early stages of a process to consider a number of options for the aluminum businesses which may lead to discussions with third parties. Once UK restructuring has been completed, Teesside's steelmaking Steelmaking is the second step in producing steel from iron ore. In this stage, impurities such as sulfur, phosphorus, and excess carbon are removed from the raw iron, and alloying elements such as manganese, nickel, chromium and vanadium are added to produce the exact steel capacity will be surplus to internal requirements and therefore, to avoid closure, the potential for refocussing the site as a cash generative gen·er·a·tive adj. 1. Having the ability to originate, produce, or procreate. 2. Of or relating to the production of offspring. generative pertaining to reproduction. slab exporter is being assessed. Options including joint ventures and equity partnerships are currently being explored. The next stage of re-financing will focus on extending the Group's debt maturity profile. (1) Net gearing in accordance with the Group's banking covenants is 36%. Commenting on the results: Jim Leng, Chairman, said: "Good progress has been made during 2003 on a number of important fronts. The foundations for recovery are established now that we have the people, the plan and the resources to improve our performance. Whilst this process will take time, the Board is determined that the Group's potential will be fully realised. The general market outlook is somewhat more positive than at this time last year and we are more than ever convinced con·vince tr.v. con·vinced, con·vinc·ing, con·vinc·es 1. To bring by the use of argument or evidence to firm belief or a course of action. See Synonyms at persuade. 2. that the changes underway are the right ones to rebuild Corus Corus may refer to:
Philippe Varin, Chief Executive, said: "In 2003 the Group benefited from a global recovery in steel prices, which together with significant progress in our manufacturing performance and continued benefits from our ongoing cost and efficiency programme, more than offset higher raw material costs. This has led to a substantial year on year improvement in the Group's results. Although the external environment contains a number of challenges, not least raw material prices and supply, at this early stage in the year we are, on balance, confident about the outlook for 2004. Our 'Restoring Success' initiatives are underway, and we look forward to progressive benefits from these as we move through 2004 and beyond." Copies of today's announcement are available on the Corus website: www.corusgroup.com
CORUS GROUP plc
PRELIMINARY REPORT FOR THE YEAR ENDED 3 JANUARY 2004
CONTENTS
Summary 1 - 3
Preliminary Report
Index 4
Review of the Period 5 - 11
Consolidated Profit and Loss Account 12
Consolidated Balance Sheet 13
Statement of Total Recognised Gains and Losses 14
Reconciliation of Movements in Shareholders' Funds 14
Consolidated Cash Flow Statement 15 -16
Reconciliation of Net Cash Inflow/(Outflow) to Movement in
Net Debt 17
Analysis of Net Borrowings 17
Supplementary Information 18 - 24
The Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Profit and Loss Account, Consolidated Balance Sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. , Statement of Total Recognised Gains and Losses, Reconciliation of Movements in Shareholders' Funds and the Consolidated Cash Flow Statement shown in respect of the year ended 3 January January: see month. 2004 are extracted from the full accounts for that year which were approved by the Board of Directors on 18 March 2004 and will be filed with the Registrar of Companies The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. . The financial information contained in this announcement does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The report of the auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together on these accounts is unqualified and does not contain a statement under Section 237 (2) or (3) of the Companies Act 1985. The Report and Audited Financial Statements will be mailed to shareholders later this month at which time copies will also be available from the Secretary's Office, Corus, 30 Millbank For other places called Millbank, see Millbank (disambiguation) Coordinates: Millbank is an area of central London in the City of Westminster. Millbank is located by the Thames, east of Pimlico and south of Westminster. , London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. SW1P 4WY, or by telephoning 0800 484113. REVIEW OF THE PERIOD Summary of operating results Group turnover for 2003 rose 11% to GBP 7,953m (2002: GBP 7,188m). The increase was primarily in the carbon steel segment where both sales volume and average revenue per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. were 7% higher than in 2002. In the first half of the year turnover amounted to GBP 4,023m compared to GBP 3,930m in the second half. Total operating costs operating costs npl → gastos mpl operacionales amounted to GBP 8,161m (2002: GBP 7,634m), including GBP 4,080m in the first half and GBP 4,081m in the second half. Underlying operating costs, excluding exceptional items, grew by 6% to GBP 8,019m (2002: GBP 7,581m), comprising GBP 4,059m in the first half and GBP 3,960m in the second half. Turnover and operating costs were influenced by the impact of exchange rate effects, resulting from both the stronger euro and weaker US dollar. Exceptional items in the period totaled GBP 142m (2002: GBP 53m) and consisted of GBP 121m in the second half and GBP 21m in the first half. The operating loss before exceptional items reduced by GBP 327m to GBP 66m (2002: GBP 393m). After exceptional items the Group operating loss was GBP 208m (2002: GBP 446m). An analysis of the operating results is discussed in more detail below in the context of 'Carbon steel operating performance' and 'Aluminum operating performance'. Carbon steel - operating performance Turnover for the period was GBP 6,972m, compared with GBP 6,231m in 2002. Excluding turnover from distribution and further processing and other turnover (which includes by-products by-products materials generated incidentally to the production of a principal product in an industry or industrial enterprise. In the meat industry by-products include blood, bone, fat, bristle, hair, wool, hide, skin, hoof, horn and offal products prepared in various ways for use and scrap), underlying product turnover increased by 14% as a result of a rise in both deliveries and average revenues of 7%. Total deliveries to the UK market increased to 6.1mt compared to 5.9mt in 2002. Within the Group's main carbon steel products, deliveries rose to 5.5mt (2002: 5.4mt) which, against a background of flat UK demand of c.10.7mt, resulted in an increase in Corus' UK market share to 51% (2002: 50%). As a result of an improving trend through the year, largely due to improved delivery performance and a reduction in imports, Corus' UK market share in the second half of 2003 was 52%. Although steel consumption in the mainland Mainland. 1 Island (1991 pop. 14,150), 178 sq mi (461 sq km), N Scotland. The largest of the Orkney Islands, it is also called Pomona. Kirkwall, the seat of the Orkney Islands council area, is on the island. EU market remained weak as demand from steel using industries declined, Corus deliveries to mainland Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). increased by 4% to 8.5mt (2002: 8.1mt).
Deliveries to markets outside Europe increased 22% to 3.2mt (2002:
2.6mt), reflecting continued strong demand from China and other Asian
export markets that more than offset a reduction in US deliveries as a
result of weak manufacturing demand and Section 201 import restrictions,
which were in place through most of 2003.The increase in average revenue reflected the combination of strong Asian demand and EU production restraint RESTRAINT. Something which prevents us from doing what we would desire to do. 2. Restraint is lawful and unlawful. It is lawful when its object is to prevent the violation of the law, or the rights of others. that led to a sharp rise in European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. market spot prices, particularly in the first half of 2003. Notably, European market spot prices grew more strongly for flat products than for long products, due to weak construction demand, particularly in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). and in the steel intensive sectors in the UK (private & commercial buildings). Carbon steel - operating performance, continued Turnover of GBP 3,513m in the first half fell by 2% in the second half to GBP 3,459m, reflecting a reduction in distribution and further processing of 4% and a slight easing of average revenue as market selling price rises in the first half flattened flat·ten v. flat·tened, flat·ten·ing, flat·tens v.tr. 1. To make flat or flatter. 2. To knock down; lay low: The boxer was flattened with one punch. out. Sales volume was stable between the first and second half despite the seasonal impact of holiday and maintenance shutdowns and a fire in a conveyor Conveyor A horizontal, inclined, declined, or vertical machine for moving or transporting bulk materials, packages, or objects in a path predetermined by the design of the device and having points of loading and discharge fixed or selective. at Scunthorpe Scunthorpe, city (1991 pop. 79,043), in the Parts of Lindsey, North Lincolnshire, E England. Situated on an ironstone field, Scunthorpe was a center of iron and steel manufacture from the early 1900s to the 1970s. Today its principal industry is the manufacture of apparel. works during the second half of the year. Total carbon steel operating costs including exceptional items amounted to GBP 7,205m (2002: GBP 6,698m) including GBP 3,584m in the first half and GBP 3,621m in the second half. Exceptional items amounted to GBP 137m in the period (2002: GBP 45m). The exceptional charge in the first half mainly related to the announced closure of the electro-zinc line at Shotton Shotton is a placename with several meanings:
fixed assets npl → immobilisations fpl fixed assets fix npl → arising from the continuing losses. No provision has been made for the closure of Teesside Teesside is the name given to the conurbation in the North East of England made up of the towns of Middlesbrough, Hartlepool, Stockton-on-Tees, Redcar and surrounding settlements. It was also the name of a county borough between 1968 and 1974. works. Underlying operating costs (excluding exceptional items) increased by 6% to GBP 7,068m (2002: GBP 6,653m). The key factors were the 7% increase in sales volumes; higher raw material prices (particularly for coke, iron ore ore, metal-bearing mineral mass that can be profitably mined. Nearly all rock deposits contain some metallic minerals, but in many cases the concentration of metal is too low to justify mining the ore. and scrap) which more than offset the benefits of a weaker US dollar against sterling; and the exchange translation impact of the stronger euro against sterling for those businesses located in the euro zone. In the first half underlying operating costs were GBP 3,564m and fell 2% to GBP 3,504m in the second half. The Group achieved significant improvements in manufacturing performance due to more stable UK operations, in part because of the resumption of normal two blast furnace operations at Port Talbot in Wales Wales, Welsh Cymru, western peninsula and political division (principality) of Great Britain (1991 pop. 2,798,200), 8,016 sq mi (20,761 sq km), west of England; politically united with England since 1536. The capital is Cardiff. . In addition steel output at IJmuiden in the Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. rose by 400,000 tonnes to 6.4mt, following the reline reline /re·line/ (re-lin´) to resurface the tissue side of a denture with new base material in order to achieve a more accurate fit. of blast furnace No. 6 in 2002 and output at the Direct Sheet Plant rose from 720,000 tonnes to 1mt. Against the background outlined above, carbon steel operations incurred a pre-exceptional operating loss of GBP 96m in 2003 (2002: GBP 422m), comprising GBP 51m in the first half and GBP 45m in the second. Including exceptional items, a Group operating loss of GBP 233m was incurred in 2003 (2002: GBP 467m loss), with a loss of GBP 71m in the first half and a loss of GBP 162m in the second half. Aluminium - operating performance Turnover in 2003 increased by 3% to GBP 981m, compared to GBP 957m in 2002. Overall sales volumes remained constant with a 3% increase in average revenues. The main factor in higher turnover was the weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. of sterling against the euro, which increased the sterling value of
turnover of Aluminium businesses located in the euro zone. This currency
translation effect was partly offset by lower aluminium trading
activities and lower euro LME See London Metal Exchange. LME See London Metal Exchange (LME). price for Aluminium when compared to 2002. There was an 8% decrease in turnover between the first and second half of 2003, in part reflecting the normal seasonal effect of customer shutdowns in the summer and Christmas Christmas [Christ's Mass], in the Christian calendar, feast of the nativity of Jesus, celebrated in Roman Catholic and Protestant Churches on Dec. 25. In liturgical importance it ranks after Easter, Pentecost, and Epiphany (Jan. 6). periods. Total aluminium operating costs amounted to GBP 956m in 2003, up 2% on 2002 at GBP 936m. 2003 operating costs comprised of GBP 496m in the first half and GBP 460m in the second half. Exceptional items within operating costs amounted to GBP 5m, including GBP 1m in the first half and GBP 4m in the second half. Exceptional items in the second half mainly related to rationalisation Noun 1. rationalisation - (psychiatry) a defense mechanism by which your true motivation is concealed by explaining your actions and feelings in a way that is not threatening rationalization programmes in the aluminium rolled products plant in Duffel (Belgium Belgium (bĕl`jəm), Du. België, Fr. La Belgique, officially Kingdom of Belgium, constitutional kingdom (2005 est. pop. 10,364,000), 11,781 sq mi (30,513 sq km), NW Europe. ). Underlying operating costs, excluding exceptional items, amounted to GBP 951m, 2% higher than 2002 at GBP 928m, primarily driven by the exchange translation impact of the stronger euro against sterling that offset the benefit of the lower euro LME price of Aluminium. In the second half of 2003, operating costs of GBP 456m were 8% lower than the first half at GBP 495m, reflecting reduced activity in the second half of the year and the lower euro LME price. Against the background outlined above, the aluminium pre-exceptional operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. was GBP 30m in 2003 (2002: GBP 29m) comprising GBP 15m in both the first and second halves. The 2003 operating profit, after exceptional items was GBP 25m (2002: GBP 21m) with GBP 14m in the first half and GBP 11m in the second half. Restructuring and impairment exceptional items During the year there was a net charge of GBP 142m (2002: GBP 53m) in relation to exceptional items, of which GBP 137m related to carbon steel and GBP 5m related to aluminium. Exceptional items amounted to a net charge of GBP 21m in the first half and mainly related to the announced closure of the electro-zinc line at Shotton. Exceptional charges in the second half of GBP 121m included as principal items, provisions related to the UK restructuring programme and accelerated depreciation Accelerated Depreciation Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years of the life of an asset. Notes: The straight-line depreciation method spreads the cost evenly over the life of an asset. of GBP 37m to recognise an impairment to the value in use of fixed assets arising from the continuing losses. Profit and loss account The Group operating loss amounted to GBP 208m (2002: GBP 446m). After taking account of the share of operating results of joint ventures and associated undertakings of GBP 9m (2002: GBP 21m), the operating loss was GBP 199m (2002: GBP 425m). The net profit on the disposal of fixed assets and of businesses, subsidiaries and associated undertakings amounted to GBP 45m in 2003, and was mainly a result of the disposal of surplus land and buildings and redundant Repetitive. See redundancy. equipment. Total net interest payable at GBP 101m increased compared to 2002 (GBP 94m), with the rise largely due to the increase in the interest rate payable under the new syndicated bank facility which more than offset the positive impact of a reduction in average net debt in the period to GBP 1,414m (2002: GBP 1,581m). The net tax charge of GBP 53m arose on non-UK profits. Acquisitions and disposals On 23 October October: see month. 2002, Corus announced that it had reached agreement in principle to the sale of its aluminium rolled products and extrusions businesses to Pechiney Pechiney SA was a major aluminum conglomerate based in France until it was acquired in 2003 by the Alcan corporation headquartered in Canada. Prior to its acquisition, Pechiney grew to be the world's 4th largest producer and developer of aluminum products, employing 34,000 S.A. ("Pechiney") for EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 861m (approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. GBP 543m). However, Corus was unable to proceed with the sale and as a result a break fee of EUR20m (approximately GBP 14m) was paid by Corus to Pechiney in 2003. On 5 February February: see month. 2004, Corus announced that it was entering the early stages of a process to consider the options for its aluminium businesses, which may lead to discussions with third parties. On 17 April 2003, Corus announced that Corus Aluminium Service Centres Inc. in the USA had been sold to Clayton Clayton, city (1990 pop. 13,874), seat of St. Louis co., E central Mo., a suburb of St. Louis; inc. 1919. Developed in the 1960s, it has high-rise office buildings, hotels, and shopping centers; several major firms are headquartered there. Metals Inc. for a price of US$8m (approximately GBP 5m). On 19 June June: see month. 2003, Corus announced that it had completed the purchase of Sollac Mediterranee's ('Sollac') 50% share in Lusosider Projectos Siderugicos S.A. ('Lusosider') for EUR11m (approximately GBP 8m) in cash. Simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics Corus sold the 50% share to Banco Espirito Santo Santo, New Hebrides: see Espíritu Santo. de Investimento S.A. for the same consideration who subsequently completed the sale of this 50% venture to Companhia Siderugica Nacional Nacional is the Spanish and Portuguese word for national. It can refer to: Sports
Arcelor S.A. (Euronext: LOR) is the world's largest steel producer in terms of turnover and the second largest in terms of steel output, with a turnover of .A., producing hot dipped dip v. dipped, dip·ping, dips v.tr. 1. To plunge briefly into a liquid, as in order to wet, coat, or saturate. 2. galvanised steel sheet and electrolytic e·lec·tro·lyt·ic adj. 1. Of or relating to electrolysis. 2. Produced by electrolysis. 3. Of or relating to electrolytes. e·lec tinplate. On 13 October 2003, Corus completed the purchase of a 67% shareholding in Segal Se·gal , George 1924-2000. American sculptor known for his realistic plaster casts of people in ordinary situations. Noun 1. Segal - United States sculptor (born in 1924) George Segal SCRL SCRL Scroll Lock ('Segal'), a Belgian Belgian having some relationship to Belgium. Belgian barge dog see schipperke. Belgian black pied cattle black, Belgian dairy cattle. Belgian blue dual-purpose cattle; blue, white or blue roan. joint venture (where Corus had previously held 33% of the shares), for EUR33m (approximately GBP 23m) in cash. Simultaneously, Corus completed the sale of a 50% share to Metalinvest, a Dutch investment fund, for EUR25m (approximately GBP 18m) in cash. Following the strategic decision to focus on core activities, Corus is rationalising its operations in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Corus decided to sell its two service centre businesses, Corus Coil Products and Corus Metals, along with the downstream From the provider to the customer. Downloading files and Web pages from the Internet is the downstream side. The upstream is from the customer to the provider (requesting a Web page, sending e-mail, etc.). manufacturing business, Corus Metal Profiles. These comprise To embrace, cover, or include; to confine within; to consist of. In the law governing patents—grants of an exclusive right or privilege to make, use, or sell an invention or product for a term of years—the term comprise the activities of the business unit, Corus Metal Services North America, which employs approximately 340 people and operates from 17 locations in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and the USA. The businesses concerned lack the critical mass required to qualify as a core business for Corus. The sale of Corus Metal Profiles was completed on 9 January 2004. An agreement for the sale of Corus Coil Products and Corus Metals has been signed and completion will take place when certain conditions are satisfied. Capital expenditure Capital expenditure amounted to GBP 163m in 2003 (2002: GBP 188m). The reduction from 2002 reflected the fact that the Port Talbot no. 5 blast furnace rebuild was completed early in 2003 and further major schemes, including those related to the restructuring of the UK asset base, were not approved until the latter part of the year. The expenditure during the year was, therefore, restricted to essential replacements. Employees There were 49,400 employees at 3 January 2004, compared to 50,900 at 28 December 2002 and 50,400 at 29 June 2003. The net reduction of 1,500 during the year comprised 1,800 due to on-going cost and efficiency measures; together with restructuring and re-organisation of some downstream facilities, which was partly offset by some 300 additional jobs. Cash flow and financing Net debt decreased by GBP 223m in the period giving a movement from net debt of GBP 1,236m at 28 December 2002 to net debt of GBP 1,013m at 3 January 2004. Net debt consisted of borrowings of GBP 1,393m less cash balances and deposits of GBP 380m. The movement largely reflected the issue of ordinary shares in the period in the form of the placing and open offer. There was a net cash inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. from operating activities of GBP 224m in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite a total operating loss of GBP 208m. There was a net cash outflow on investments and servicing of finance of GBP 119m reflecting the level of net debt during the period and the new bank facility negotiated in the period. There was also a cash outflow on capital expenditure and financial investment of GBP 81m, after the sale of tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. fixed assets of GBP 82m. The cash outflow from acquisitions and disposals of GBP 20m mainly arose from payments of GBP 16m in respect of the acquisitions of Precoat International plc and Erik Olsson Olsson is a surname, and may refer to:
A net GBP 143m was applied to repaying gross borrowings. Placing and open offer Ordinary shareholders of the Company on the register at the close of business on 7 November November: see month. 2003 were offered, by way of a placing and open offer, 1,304m new ordinary shares on the basis of five new ordinary shares of 10p each per 12 existing ordinary shares of 50p they held. These shares were fully subscribed Fully Subscribed A situation in which an underwriting firm has successfully sold to investors all of its available issues of a public offering of securities. When the issue is fully subscribed, the underwriter's risk of being undersubscribed (being unable to sell its allotment of , resulting in total proceeds on issue of GBP 291m received on 11 December 2003. These proceeds were net of share issue expenses of GBP 16m, which have been written off to the share premium account. Accounting policies The financial statements to 3 January 2004 have been produced in accordance with the applicable accounting standards in the UK. They also include a reconciliation of earnings and equity under US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). as set out in note 16 of "Supplementary Information" in this release. Preparation of financial statements includes the need to make assumptions and estimations that affect the amount of assets, liabilities, revenues and expenses being reported. Actual results may differ from those estimated under different assumptions and conditions. For the period under review, the most significant areas of judgement for Corus under both UK GAAP UK GAAP United Kingdom Generally Accepted Accounting Principles and US GAAP related to tangible fixed assets, current asset provisions, deferred tax, retirement benefits and the value of provisions created for redundancy Having a secondary peripheral, computer system or network device that takes over when the primary unit fails. See fault tolerant, mirroring, RAID, hot standby and backup types. 1. , rationalisation and other related costs. There have been no new UK standards issued by the Accounting Standards Board The role of the Accounting Standards Board (ASB) is to issue accounting standards in the United Kingdom. It is recognised for that purpose under the Companies Act 1985. It took over the task of setting accounting standards from the Accounting Standards Committee (ASC) in 1990. since the last Report & Accounts. However, one standard, FRS FRS abbr. Fellow of the Royal Society FRS, n “flexed rotated side-bent,” an osteopathic abbreviation used to describe vertebral position in cases of spinal dysfunction. 17 "Retirement Benefits" which was issued in November 2000 has measurement requirements which do not need to be met until accounting periods beginning on or after 1 January 2005. The standard has not been adopted, although the required transitional disclosure requirements are being made in the Report & Account for 2003. Information on the net pension asset under FRS 17 is set out in note 15 of "Supplementary Information" in this release. Forward Looking Statements Statements in this release include "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " that express expectations of future events or results. All statements based on future expectations rather than on historical facts are forward-looking statements that involve a number of risks and uncertainties, and Corus cannot give assurance that such statements will prove to be correct.
CORUS GROUP plc
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Audited Unaudited Audited
2003 First 2002
GBP m half GBP m
2003
GBP m
Turnover: group and share of joint
ventures 8,203 4,152 7,407
Less: share of joint ventures' turnover (250) (129) (219)
-------- --------- ---------
Group turnover 7,953 4,023 7,188
-------- --------- ---------
Operating costs before exceptional items (8,019) (4,059) (7,581)
Rationalisation and impairment exceptional
items
charged against operating costs (142) (21) (53)
-------- --------- ---------
Total operating costs (8,161) (4,080) (7,634)
-------- --------- ---------
Group operating loss (208) (57) (446)
-------- --------- ---------
Share of operating results of joint
ventures and associated undertakings
Continuing operations 9 5 4
Discontinued operations - - 17
-------- --------- ---------
9 5 21
-------- --------- ---------
Total operating loss (199) (52) (425)
Profit on disposal of fixed assets 47 11 96
(Loss)/profit on disposal of group
undertakings (2) - 19
-------- --------- ---------
Loss before interest (154) (41) (310)
Net interest and investment income:
Group (98) (46) (92)
Joint ventures and associated undertakings (3) (2) (2)
-------- --------- ---------
Loss before taxation (255) (89) (404)
Taxation (53) (36) (61)
-------- --------- ---------
Loss after taxation (308) (125) (465)
Minority interests - equity 3 - 7
-------- --------- ---------
Loss for the financial period (305) (125) (458)
Dividends - equity - - -
-------- --------- ---------
Loss retained for the financial period (305) (125) (458)
======== ========= =========
Earnings per share
As restated*
- Basic (9.25)p (3.88)p (14.23)p
- Diluted (9.25)p (3.88)p (14.23)p
======== ========= =========
As previously reported
- Basic - (3.99)p (14.65)p
- Diluted - (3.99)p (14.65)p
======== ========= =========
* The loss per share has been calculated by dividing the loss
attributable to shareholders by the weighted average number of
ordinary shares outstanding during the period. As required by FRS 14
'Earnings per share', the weighted average number of shares used to
calculate the loss per share has been restated for both 2002 and
first half of 2003. This is to reflect the bonus multiple of 1.029
inherent in the share placing and open offer in December 2003.
Further details of the share placing and open offer are set out on
page 10.
CORUS GROUP plc
CONSOLIDATED BALANCE SHEET
Audited Unaudited Audited
2003 First 2002
GBP m half GBP m
2003
GBP m
Fixed assets
Intangible assets 96 101 105
Tangible assets 2,729 2,836 2,871
Investments in joint ventures 91 85 84
Investments in associated undertakings 8 5 7
Other investments and loans 60 73 59
------- --------- -------
2,984 3,100 3,126
------- --------- -------
Current assets
Stocks 1,404 1,393 1,337
Debtors: amounts falling due after more than
one year 479 480 457
------- --------- -------
Debtors: amounts falling due within one year 1,348 1,597 1,422
Less: securitisation of trade debtors (215) (215) (181)
------- --------- -------
Net debtors falling due within one year 1,133 1,382 1,241
Short term investments 138 44 40
Cash at bank and in hand 242 212 230
------- --------- -------
3,396 3,511 3,305
Creditors: amounts falling due within one
year (1,583) (2,085) (1,636)
------- --------- -------
Net current assets 1,813 1,426 1,669
------- --------- -------
Total assets less current liabilities 4,797 4,526 4,795
Creditors: amounts falling due
after more than one year
Convertible bonds (332) (328) (309)
Other borrowings (948) (865) (1,119)
Other creditors (28) (36) (36)
Provisions for liabilities and charges (605) (530) (522)
Accruals and deferred income
Regional development and other grants (40) (43) (40)
------- --------- -------
2,844 2,724 2,769
======= ========= =======
Capital and reserves
Called up share capital 1,696 1,565 1,565
Share premium account 167 7 7
Statutory reserve 2,338 2,338 2,338
Other reserves 201 201 201
Profit and loss account (1,605) (1,437) (1,389)
------- --------- -------
Shareholders' funds - equity interests 2,797 2,674 2,722
Minority interests
Equity interests in subsidiary undertakings 47 50 47
------- --------- -------
2,844 2,724 2,769
======= ========= =======
CORUS GROUP plc
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Audited Unaudited Audited
2003 First 2002
GBP m half GBP m
2003
GBP m
Loss for financial period (305) (125) (458)
Exchange translation differences on
foreign currency net investments 89 77 83
------- --------- -------
Total recognised losses relating to the
period (216) (48) (375)
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
Audited Unaudited Audited
2003 First 2002
GBP m half GBP m
2003
GBP m
Shareholders' funds at beginning of period 2,722 2,722 3,061
Loss for the period (305) (125) (458)
Exchange translation differences on
foreign currency net investments 89 77 83
Transfer of goodwill - - 33
New shares issued (net of issue costs) 291 - 3
------- --------- -------
Shareholders' funds at end of period 2,797 2,674 2,722
======= ========= =======
CORUS GROUP plc
CONSOLIDATED CASH FLOW STATEMENT
Audited Unaudited Audited
2003 First 2002
GBP m half GBP m
2003
GBP m
Net cash inflow/(outflow) from operating
activities 224 (101) 41
Dividends from joint ventures and
associated undertakings 4 1 8
Returns on investments and
servicing of finance
Interest and other dividends received 15 9 15
Interest paid (116) (56) (97)
Issue costs of new loans (16) - (4)
Interest element of finance lease rental
payments (2) (1) (1)
------- --------- -------
Net cash outflow from returns on investments
and servicing of finance (119) (48) (87)
------- --------- -------
Taxation
UK corporation tax received - - 2
Overseas tax paid (50) (24) (16)
------- --------- -------
Tax paid (50) (24) (14)
------- --------- -------
Capital expenditure and financial investment
Purchase of tangible fixed assets (163) (72) (176)
Sale of tangible fixed assets 82 37 112
Purchase of intangible fixed assets - - (1)
Purchase of other fixed asset investments - (9) (7)
Sale of other fixed asset investments 3 1 -
Loans to joint ventures and associated
undertakings (5) (4) -
Repayment of loans by joint ventures
and associated undertakings 2 1 15
------- --------- -------
Net cash outflow from capital expenditure
and financial investment (81) (46) (57)
------- --------- -------
Acquisitions and disposals
Purchase of subsidiary undertakings and
businesses (17) (17) -
Net overdraft acquired with subsidiary
undertakings and businesses - - (5)
Investments in joint ventures and associated
undertakings (9) (1) (3)
Sale of businesses and subsidiary
undertakings 5 5 2
Sale of joint ventures and associated
undertakings 1 - 451
------- --------- -------
Net cash (outflow)/inflow from acquisitions
and disposals (20) (13) 445
------- --------- -------
CONSOLIDATED CASH FLOW STATEMENT, continued
Audited Unaudited Audited
2003 First 2002
GBP m half GBP m
2003
GBP m
Equity dividends paid to shareholders - - -
------- --------- -------
Net cash (outflow)/inflow before use of
liquid resources and financing (42) (231) 336
------- --------- -------
Management of liquid resources
Net purchase of short term investments (96) (4) (28)
------- --------- -------
Net cash outflow from management of liquid
resources (96) (4) (28)
------- --------- -------
Financing
Issue of ordinary shares 307 - 3
Share issue expenses (16) - -
------- --------- -------
Net cash inflow/(outflow) from issue of
ordinary shares 291 - 3
------- --------- -------
New loans 2 261 231
Repayment of borrowings (144) (31) (508)
New finance leases - - 25
Capital element of finance lease rental
payment (1) - (14)
------- --------- -------
(Decrease)/increase in debt (143) 230 (266)
------- --------- -------
Net cash inflow/(outflow) from financing
activities 148 230 (263)
------- --------- -------
Increase/(decrease) in cash in period 10 (5) 45
CORUS GROUP plc
RECONCILIATION OF NET CASH INFLOW/OUTFLOW TO MOVEMENT IN NET DEBT
Audited Unaudited Audited
2003 First 2002
GBP m half GBP m
2003
GBP m
Increase/(decrease) in cash 10 (5) 45
Increase in liquid resources 96 4 28
Decrease/(increase) in debt 143 (230) 266
Issue costs of new loans 16 - 4
------- --------- -------
Change in net funds resulting from cash flows
in period 265 (231) 343
Debt and liquid resources acquired - - (4)
Effect of foreign exchange rate changes (41) (39) (24)
Other non-cash changes (1) - 9
------- --------- -------
Movement in net debt in period 223 (270) 324
Net debt at beginning of the period (1,236) (1,236) (1,560)
------- --------- -------
Net debt at end of period (1,013) (1,506) (1,236)
======= ========= =======
ANALYSIS OF NET BORROWINGS
Audited Unaudited Audited
2003 First 2002
GBP m half GBP m
2003
GBP m
Cash at bank and in hand 242 212 230
Bank overdrafts (34) (18) (36)
Short term investments 138 44 40
Long term borrowings (1,239) (1,151) (1,386)
Other loans (78) (550) (41)
Obligations under finance leases (42) (43) (43)
-------- --------- --------
(1,013) (1,506) (1,236)
======== ========= ========
CORUS GROUP plc
SUPPLEMENTARY INFORMATION
Audited Unaudited Audited
2003 First 2002
GBP m half GBP m
2003
GBP m
1. Group turnover
BY BUSINESS SEGMENT
Carbon steel products 5,423 2,723 4,742
Distribution & further processing 1,330 657 1,236
Other turnover 219 133 253
------- --------- -------
Carbon steel 6,972 3,513 6,231
Aluminium 981 510 957
------- --------- -------
Group turnover 7,953 4,023 7,188
======= ========= =======
BY DESTINATION
UK 2,148 1,091 2,071
Europe (excluding UK) 4,153 2,130 3,658
North America 781 398 881
Other areas 871 404 578
------- --------- -------
Group turnover 7,953 4,023 7,188
======= ========= =======
2. Group operating result
Before exceptional items:
Carbon steel (96) (51) (422)
Aluminium 30 15 29
------- --------- -------
(66) (36) (393)
======= ========= =======
After exceptional items:
Carbon steel (233) (71) (467)
Aluminium 25 14 21
------- --------- -------
(208) (57) (446)
======= ========= =======
3. Product turnover (unaudited)
Carbon steel products:
UK 1,806 922 1,643
Europe (excluding UK) 2,686 1,372 2,283
North America 449 220 548
Other areas 482 209 268
------- --------- -------
5,423 2,723 4,742
======= ========= =======
CORUS GROUP plc
SUPPLEMENTARY INFORMATION
Audited Unaudited Audited
2003 First 2002
half
2003
Product turnover, continued
Aluminium:
UK 63 29 87
Europe (excluding UK) 677 356 634
North America 163 85 165
Other areas 78 40 71
-------- --------- --------
981 510 957
======== ========= ========
comprising:
Primary metal 104 53 123
Rolled products 663 346 633
Extrusions 214 111 201
-------- --------- --------
981 510 957
======== ========= ========
4. Sales volume (unaudited) kt kt kt
Carbon steel products:
UK 6,163 3,140 5,896
Europe (excluding UK) 8,464 4,470 8,138
North America 1,390 677 1,677
Other areas 1,777 607 910
-------- --------- --------
17,794 8,894 16,621
======== ========= ========
Aluminium:
UK 24 12 62
Europe (excluding UK) 400 206 373
North America 98 49 96
Other areas 33 16 29
-------- --------- --------
555 283 560
======== ========= ========
comprising:
Primary metal 129 64 147
Rolled products 333 172 324
Extrusions 93 47 89
-------- --------- --------
555 283 560
======== ========= ========
CORUS GROUP plc
SUPPLEMENTARY INFORMATION
Audited Unaudited Audited
2003 First 2002
GBP m half GBP m
2003
GBP m
5. Total operating costs
Raw materials & consumables 3,516 1,787 3,339
Maintenance costs
(excluding own labour) 696 340 682
Other external charges* 1,296 652 1,209
Employment costs 1,745 851 1,568
Depreciation & amortisation
(net of grants released) 364 174 445
Other operating costs 559 287 436
Changes in stock 3 (5) (34)
Own work capitalised (18) (6) (11)
------- --------- -------
8,161 4,080 7,634
======= ========= =======
* Including fuels and utilities, hire charges and carriage costs.
6. Rationalisation and impairment exceptional items
As included in total operating costs:
- Redundancy & related costs 51 7 (14)
- Accelerated depreciation 47 18 82
- Accelerated amortisation 1 - 23
- Other asset write-downs 15 1 (3)
- Other rationalisation costs 28 (5) (35)
------- --------- -------
142 21 53
======= ========= =======
comprising:
Carbon steel 137 20 45
Aluminium 5 1 8
------- --------- -------
142 21 53
======= ========= =======
7. Net interest & investment income
Interest receivable 13 7 17
Interest payable (109) (51) (108)
Finance leases (2) (2) (1)
------- --------- -------
Group (98) (46) (92)
Joint ventures & associated
undertakings (3) (2) (2)
------- --------- -------
(101) (48) (94)
======= ========= =======
CORUS GROUP plc
SUPPLEMENTARY INFORMATION
Audited Unaudited Audited
2003 First 2002
GBP m half GBP m
2003
GBP m
8. Taxation
UK corporation tax 3 3 2
Double tax relief (3) (3) (2)
UK prior year credit (3) - (3)
Overseas prior year charge 8 10 19
Overseas taxes 38 36 15
------- --------- -------
Current tax 43 46 31
UK deferred tax - - 40
Overseas deferred tax 9 (11) (16)
------- --------- -------
Group tax 52 35 55
Joint ventures 1 1 2
Associated undertakings - - 4
------- --------- -------
53 36 61
======= ========= =======
Deferred tax assets of GBP 143m have been recognised at 3 January 2004
(2002: GBP 137m). The deferred tax assets are recoverable against
future forecast taxable profits within a time horizon that the
directors consider to be more likely than not to occur. Deferred tax
assets have not been recognised in respect of total tax losses with a
value of GBP 1,749m (2002: GBP 1,390m). These include UK losses of GBP
1,197m (2002: GBP 831m). The increase in the value of UK losses not
recognised comprises current year losses of GBP 224m and previously
recognised losses of GBP 142m.
9. Reconciliation of Group operating loss to
net cash flow from operating activities
Group operating loss (208) (57) (446)
Depreciation & amortisation
(net of grants released) 364 174 445
Exceptional items (excluding
accelerated depreciation) 94 3 (52)
Utilisation of provisions (44) (15) (57)
(Increase)/decrease in stocks (18) (18) 27
Decrease/(increase) in debtors 95 (162) 218
Decrease in creditors (87) (39) (83)
Other movements (net) 28 13 (11)
------- --------- -------
224 (101) 41
======= ========= =======
CORUS GROUP plc
SUPPLEMENTARY INFORMATION
Audited Unaudited Audited
2003 First 2002
GBP m half GBP m
2003
GBP m
10. Stocks
Raw materials 511 495 472
Work in progress 410 398 387
Finished goods 483 500 478
------- --------- -------
1,404 1,393 1,337
======= ========= =======
11. Securitisation of trade debtors
Securitised gross trade debtors 338 353 293
Less non-returnable proceeds (215) (215) (181)
------- --------- -------
Net securitised trade debtors 123 138 112
Other trade debtors 847 1,088 883
------- --------- -------
970 1,226 995
======= ========= =======
12. Capital expenditure
Purchase of tangible fixed assets 163 72 176
Movement in capital creditors - (9) 12
------- --------- -------
163 63 188
======= ========= =======
13. Reconciliation of Group operating loss to
EBITDA before exceptional items
(unaudited)
Group operating loss (208) (57) (446)
Exceptional items (excluding
accelerated
depreciation and amortisation) 94 3 (52)
Depreciation & amortisation (net of
grants released) 364 174 445
------- --------- -------
250 120 (53)
======= ========= =======
comprising:
Carbon steel - UK (incl' Corporate
centre costs) (71) (51) (251)
Carbon steel - Netherlands 248 135 130
------- --------- -------
177 84 (121)
Aluminium 73 36 68
------- --------- -------
250 120 (53)
======= ========= =======
CORUS GROUP plc
SUPPLEMENTARY INFORMATION
Audited Unaudited Audited
2003 First 2002
half
2003
14. Employees number number number
Average weekly numbers employed:
UK 25,100 25,300 25,900
Netherlands 11,600 11,700 11,900
Other countries 13,600 13,700 13,800
-------- --------- --------
50,300 50,700 51,600
======== ========= ========
Numbers employed at end of period:
UK 24,600 25,100 25,400
Netherlands 11,400 11,600 11,800
Other countries 13,400 13,700 13,700
-------- --------- --------
49,400 50,400 50,900
======== ========= ========
15. Summary FRS 17 disclosure GBP m GBP m GBP m
(net pension asset)
As measured in accordance with the
UK requirements of FRS 17:
Total market value of assets 11,321 10,865 10,395
Present value of schemes' liabilities(11,203) (10,845) (10,307)
-------- --------- --------
Recoverable surplus 118 20 88
Related deferred tax liability (32) (1) (20)
-------- --------- --------
Net pension asset 86 19 68
======== ========= ========
Of the net pension asset shown above, GBP 288m (first half 2003: GBP
265m; 2002: GBP 280m) relates to schemes in surplus and GBP 202m
(first half 2003: GBP 246m: 2002: GBP 212m) relates to schemes in
deficit.
CORUS GROUP plc
SUPPLEMENTARY INFORMATION
Audited Unaudited Audited
2003 First 2002
GBP m half GBP m
2003
GBP m
16. US GAAP
Loss for financial period (305) (125) (458)
Adjustments:
Amortisation of goodwill 7 4 9
Impairment of US GAAP goodwill on
adoption of SFAS 142
(net of release of negative
goodwill) - - (22)
Profit on sale of associated
undertaking/subsidiary - - 123
Interest costs capitalised 8 3 6
Depreciation of capitalised interest (26) (10) (18)
Pension costs (2) (3) 95
Stock-based employee compensation
awards (13) (8) (15)
Accelerated depreciation (57) (4) (151)
Profit on disposal of fixed assets (6) (6) (23)
Deferred taxation (7) 1 29
Profit on commodity derivatives 42 12 22
Profit on foreign currency derivatives 3 7 5
Debt issue costs 11 - -
------- --------- -------
Loss for financial period - US GAAP (345) (129) (398)
======= ========= =======
Earnings per ADS (US GAAP)
As restated
- Basic GBP GBP GBP
(1.05) (0.40) (1.24)
- Diluted GBP GBP GBP
(1.05) (0.40) (1.24)
======= ========= =======
As previously reported
- Basic GBP GBP
- (0.41) (1.27)
- Diluted GBP GBP
- (0.41) (1.27)
======= ========= =======
Shareholders' equity 2,797 2,674 2,722
Adjustments:
Additional goodwill under US GAAP 13 10 6
Accelerated depreciation 98 151 155
Purchase consideration (26) (26) (26)
Interest costs capitalised (net of
depreciation) 98 104 111
Pension costs 312 283 286
Deferred taxation (142) (128) (129)
Assets/(liabilities) arising from
derivatives 43 17 (2)
Deferred profits on fixed asset
disposals (29) (29) (23)
Debt issue costs 11 - -
------- --------- -------
Shareholders' equity - US GAAP 3,175 3,056 3,100
======= ========= =======
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