ICI chops dividend as profits slide

13 April 2012

IMPERIAL Chemical Industries today slashed its dividend for the third time in three years, but by less than some analysts feared.

Chief executive John McAdam chopped 12% off the final dividend but said demand for the group's speciality chemicals 'appears to be more encouraging'. ICI shares rose 11 3/4p to 225 3/4p.

The cut in the dividend means it is now at the targeted level of one-third of earnings, which fell 22% to 18.5p per share. Pre-tax profits for 2003 before exceptionals fell 15% to £341m with the final quarter slightly better than expected.

Finance director Tim Scott said: 'Conditions improved in the final three months, particularly in the US which is a third of our business. On the flip side there is uncertainty over the cost of some raw materials.'

McAdam, who replaced Brendan O'Neill last year, has made 642 of the 2,000 job cuts aimed at achieving £100m cost savings during 2005.

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