Imperial Chemical Industries (ICI)

In the following review, references to “comparable” performance exclude the effect of currency translation differences and the impact of acquisitions and divestments. References to “as reported” performance include the effects of currency translation, acquisitions and divestments. Reconciliations between “comparable” and “as reported” performance can be found in the tables below and on the following page. Percentage changes are calculated using unrounded values. References to “trading profit” relate to operating profit before special items. Special operating items are discussed separately as they are not considered to reflect the underlying business performance. Reconciliation between trading profit and the IFRS financial measure of operating profit is shown in the tables on the next page.

Group sales for the half year were £2,821m, 2% higher as reported than 2004, despite the impact of divestments.

Sales for the International Businesses of £2,635m were 6% ahead of 2004 on a comparable basis.

National Starch delivered 7% comparable sales growth for the half year, Paints 6%, Quest 5% and Uniqema 3%. Strong comparable sales growth continued in both Asia (+15%) and Latin America (+17%), whilst North America delivered growth of 4% and Europe, 2%.

Including the effects of foreign currency translation and business divestments, sales for the International Businesses were 1% ahead of 2004 as reported.

Group trading profit for the half year was £262m, 4% ahead of 2004, with trading profit for the International Businesses of £255m, 8% ahead of 2004 on a comparable basis. All businesses were ahead, with Quest in particular delivering significant trading profit growth.

With the absence of £13m prior year trading profit from divested businesses, trading profit for the International Businesses was 3% ahead of last year as reported. Trading profit as reported for Regional & Industrial was £22m for the half year, 20% above last year.