Corus the Anglo-Dutch steelmaker has announced that it made a pre-tax loss of �234m ($364m) in the six months to the end of June.

This decline was due to weak economic conditions across our major markets

Corus

The loses were at the lower end of City expectations and share prices fell nearly 8% to 50.75 pence.

The company said a downturn in the carbon steel production market accounted for a large part of the overall losses.

During the first half of 2002 steel prices plunged to a 20 year low.

'US tariffs made matters worse'

"This decline was due to weak economic conditions across our major markets in Europe and North America exacerbated by over-production," a Corus spokesman said.

In response the steel-maker has cut thousands of jobs at its UK plants.

Corus said that US steel tariffs had made matters worse.

However, Corus is optimistic that better news is on the way - it said that the selling price for steel had improved in the second half of the year.

The company expects steel prices to increase for the rest of the year.

Aluminium sale

The group is in the process of selling its aluminium division to raise capital.

Last August Corus announced it had sold its 20% stake in Canadian-based Aluminerie Alouette for �108m.

It is anticipated that the group's remaining aluminium interests - estimated to be worth more than �700m - will be sold by the end of the year.

The company also said its planned �2.7bn acquisition of Brazilian steelmaker Companhia Siderurgica Nacional (CSN) was still to go ahead.

The deal is expected to be completed during the first quarter of 2003 and should give Corus access to cheap iron ore.