ARBED SEES NEED TO MAINTAIN PRESSURE ON COSTS
The recent deterioration in the
steel market makes it important for Arbed SA <ARBB.BR> to
maintain efforts to reduce costs, the company said in a
statement.
    It reported that its competitive position had weakened
considerably in the second half of 1986, leading to a seven pct
cut in steel output over the whole of the year to 3.74 mln
tonnes.
    Arbed had managed to make a 890 mln franc net profit,
slightly down from the 1.12 billion profit in 1985, thanks to
lower raw material costs and prudent management, the company
said.
    Arbed said the early months of 1987 had seen the market
deteriorate further, but the decision of the European Community
to maintain anti-crisis measures, at least provisionally,
should under normal circumstances have a beneficial effect.
    EC ministers have agreed to extend a quota production
system while discussions continue on an industry plan for
capacity reductions.
    Arbed said in current conditions, cost cutting efforts
remain necessary to avoid any weakening of resources which have
been built up over the last three years.
 REUTER
