Britain's Imperial Chemical Industries (ICI) posted third-quarter profits near the top end of forecasts today and said its sales outlook looked good as it held out the prospect of further price increases.
ICI posted profit before tax of £117 million sterling ($216 million) for the quarter to September 30th, up from £105 million in the year-earlier period.
The maker of Dulux paints said it would need to raise its product prices further to counter the impact of raw material cost increases and meet market expectations for year profits.
Soaring oil prices, which have pushed up prices of key petrochemical inputs used by ICI, have already forced the company to seek price increases this year.
ICI shares stood 0.58 per cent higher at 218 pence by 9:45 a.m., after rallying more than 4 per cent in early trade on the news.
The shares, up over 90 per cent so far this year, have outperformed its UK sector peers some 4 per cent in 2004.
The company, on a recovery path after a torrid 2003, said strong comparable sales growth and benefits from restructuring more than offset the impact of rising raw material costs in the quarter, with profit and cash flow ahead of last year.