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ICI has 'Solid' Second Quarter, Expects Satisfactory Progress

Published on 2005-08-08. Author : SpecialChem

ICI Chief Executive John McAdam has reported the company has maintained its positive start to 2005 with a solid second quarter. "The business made good progress raising prices to recover higher raw material costs and, despite generally weaker economic conditions compared with Q2 2004, trading profit and profit before tax were in line with last year. " said Mr. McAdam.

"Progress in Asia remained encouraging, Quest's performance improved further, and the benefits from restructuring programmes are now expected to exceed our original targets.

"The outlook for the second half of the year remains as it was at the end of Q1. Whilst we experienced some improvement in trading conditions towards the end of the quarter, European markets remained generally subdued. Nevertheless, provided there is no further deterioration in overall market conditions we continue to expect to make satisfactory progress in 2005." he added.

Result headlines are:

Second Quarter 2005

  • Comparable Group sales 6% ahead of second quarter 2004
  • Comparable International Business trading profit 5% ahead of second quarter 2004
  • Group trading profit 151m GBP, in line with second quarter 2004
  • Group profit before tax 123m GBP, in line with second quarter 2004
  • Net profit after special items 110m GBP (2004: 217m GBP)

Half Year 2005

  • Comparable Group sales 6% ahead of half year 2004
  • Comparable International Business trading profit 8% ahead of half year 2004
  • Group trading profit 262m GBP, 4% ahead of half year 2004
  • Group profit before tax 207m GBP, 12% ahead of half year 2004
  • Group cash flow before financing (143m GBP) for the half year, 254m GBP lower than 2004
  • Net profit after special items 185m GBP (2004: 277m GBP)
  • Net debt at half year 1,138m GBP, up from 989m GBP at the start of the year
  • Interim dividend declared of 3.75p per share (2004: 3.40p)

ICI is one of the world's major specialty products and paints businesses. The Group's four principal activities are National Starch, Quest, Uniqema and ICI Paints, which together account for more than 90% of ICI's sales. Today around a quarter of ICI's sales are made in Asia Pacific and 40% in the Americas with less than 12% now made in the UK.

ICI products today include flavours and starches for the food industry, fragrances, surfactants and specialty polymers for personal care products, adhesives for the electronics and packaging markets as well as a wide range of decorative coatings and specialty products for domestic use and the construction industry. The Group owns some of the world's top paint and decorative product brands such As 'Dulux', 'Glidden', 'Valentine', 'Coral', 'Alba', 'Xyladecor', 'Hammerite', 'Polycell', 'Polyfilla' and 'Alabastine'.

Source: ICI


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