Profits up but ICI warns of prices rises

Chemicals and paint group ICI said today its sales outlook was good as it unveiled an 11% rise in third-quarter profits but warned of further price hikes to offset cost increases.

ICI, which has been undergoing a restructuring drive, said strong comparable sales growth and benefits from its shake-up more than offset the impact of rising raw material costs in the third quarter, in which pre-tax trading profits lifted to £117m (€168.4m).