ICI paints a brighter picture
STRONG demand for paint and the benefits of a restructuring programme helped boost profits at chemicals-to-paints group ICI. The company reported a 23% rise in half-year profits to £185m in the six months to June 30, after stripping out the effect of currency fluctuations, acquisitions and sales.
The company said price rises would be needed to compensate for higher raw materials prices in the second half, but if these are achieved the group expects to make 'satisfactory' progress in the full year.
ICI has been working to recover from a series of disappointments over the past two years after tough economic conditions and problems at key divisions affected its performance.
The company, which employs more than 35,000 people worldwide, cut around 1,400 jobs last year as part of a drive for cost savings worth £70m.
National Starch - one of the main factors behind a profits warning from ICI last year - saw trading profits rise 24% to £108m, although this was up 16% when excluding currency swings, acquisitions and sales.
The paints division, which includes the Dulux brand and employs around half of ICI's UK workforce at Slough, Berkshire, and Stowmarket, Suffolk, increased trading profits to £100m - a rise of 19%.
ICI said group sales of £2.77bn were 6% below last year as a result of adverse currency swings and the sale of businesses. The interim dividend was raised to 3.4p from 2.75p.
