Usinor First-Half Profits Dive

Net attributable profit fell to Ffr833 million ($162.6 million) from Ffr2.36 billion on turnover that fell to Ffr37.39 billion from Ffr41.63 billion.

Taking into account the seasonal nature of Usinor Sacilor's business, the group currently expects the results for the second half to be weaker than the first but to remain clearly positive, the company said in a statement.

The industry has been hit in Europe by destocking in all industries and slack demand.

Company chairman Francis Mer forecast later at a news conference earnings should pick up in the first half of 1997.

All the conditions are there so that the first half of 1997 will show an improvement from the mediocre (first half 1996) figure I just announced, he said.

The horizon cleared up during the summer but we will only see an improvement in results in the first half of 1997.

But Mer cautioned 1997 would remain a difficult year for the steel sector. We are at the end of a disagreeable period but we are not at the beginning of a very sharp upturn, he said.

It's obvious the year 1997 in our core sector (steel) will be a year of transition, a difficult year