Brighter picture painted at ICI

CHEMICALS giant ICI painted a rosier picture today as it reported much improved profits and said US manufacturing and retail markets are coming good.

The group's paints divisions especially had had a good opening quarter buoyed by the property makeover boom.

For the March quarter the group reported underlying pre-tax profits of £67m after a shock loss a year ago. However, new chief executive John McAdam sounded a warning that raw material cost rises may be on the way.

National Starch - one of the main factors behind a profits warning from the company last year - achieved an £11m increase in trading profits to £50m.