Corus Group Plc, which is being eyed by Tata Steel and Brazilian company CSN for an acquisition, has reported excellent results for the third quarter ended 30 September 2006. The company said strong demand for steel in Europe led to an 8 per cent increase in realisations during the latest reporting quarter, even though deliveries were lower by 0.3 million tonnes.

Net profits after taxation for the quarter increased 73 per cent to $277 million from $160 million for the previous quarter ended June 2006. Earnings per share for the quarter were 15.76 pence as compared to 9.09 pence for the previous quarter. Revenues for the quarter increased by a modest 3.5 per cent to $4.86 billion from $4.69 billion for the previous quarter.

However, during the quarter the company realised a net profit of nearly $49 million from the discontinued downstream aluminium business. Profits from this business included a net of $39 million realised from the disposal of the division.

Net profits from continuing operations, excluding aluminium business, increased 60 per cent to $228 million from $142 million for the previous quarter. EBITDA for the quarter from continuing operations increased 22 per cent to $458 million from $379 million for the previous quarter.

Net debt on the company's books declined 37 per cent to $1.72 billion from $2.73 billion as at the end of previous quarter.

For the nine months ended 30 September 2006, net profits from continuing operations declined 40 per cent to $435 million from $726 million for the same period of previous year. EBITDA for the January - September period declined 15 per cent to $1.3 billion from $1.53 billion for the previous year period.

Corus stock opened firm on the LSE today following the results announcement, but has declined to 497.5 pence per share now. Tata Steel has offered 455 pence per share in cash to acquire Corus and the offer was recommended by the Corus board.

On November 17, CSN entered the fray and indicated to the Corus board that it was willing to offer 475 pence per share - subject to due diligence, finalisation of financing arrangements and recommendation by the Corus board.

CSN is currently conducting its due diligence on Corus and is yet to make a formal offer. Meanwhile, Corus has postponed a shareholder's meeting to discuss the Tata Steel offer to 20 December 2006 to provide CSN more time to come up with a firm offer.