LONDON, February 5: Britain's Imperial Chemical Industries Plc on Thursday announced a sharp fall in 1997 profits, but said its new speciality chemicals operations had fully met expectations.The company said pre-tax profit fell to £385 million before exceptional items from£603 million, with the strength of the sterling wiping £190 million off profits.
Market forecasts had pre-tax profits in a range between £375and £430 million ($711.2 million).
"Our core businesses delivered good results; the paints business had a record year and an exceptionally strong fourth quarter while materials was on an improving trend throughout 1997," said chairman Ronald Hampel.
He also said that the group's speciality chemicals acquisitions met expectations and enhanced earnings, but noted that poor performances in commodity chemicals held back earnings.
In the past year, ICI has bought -- 4.8 billion worth of higher margin speciality chemical businesses from Unilever Plc, gaining a global position in areas such as foodflavours and fragrances, starches and adhesives in addition to coatings, polyurethanes and acrylics.
It also notched up more than -- 3.5 billion through the sale of a string of bulk chemical and non-core operations in six months.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
