Imperial Chemical Industries (ICI)

last year. Despite higher tapioca costs, gross margin percentages were slightly ahead. However, costs below gross margin were higher than 2004 and trading profit was consequently below last year.

Sales for Specialty Synthetic Polymers were 14% above last year, with double-digit growth in Europe, North America and Asia. Gross margin percentages were impacted by the higher raw material costs, partly offset by increased prices. However, despite this, trading profit was ahead of last year.

After good growth in the first quarter, sales for Electronic and Engineering Materials were impacted in the second quarter by a slowdown in the cathode ray tube market, and for the half year, sales growth was 3%. Sales growth for Ablestik and Emerson & Cuming was partly offset by lower Acheson sales. Trading profit was slightly ahead of last year.

Quest
Quest sales were 5% above 2004 on a comparable basis, with growth for both the Flavour and Fragrance businesses, particularly in Asia and Latin America. Sales in Europe were also ahead of last year but in North America they were lower. Gross margin percentages were similar to last year, and with lower costs below gross margin, comparable trading profit was 38% ahead.

Including the prior year results of the Food Ingredients business, which was divested in the second quarter of 2004, and the adverse effects of foreign exchange translation, as reported sales were 11% lower than last year but as reported trading profit was 8% ahead.