ICI gains after strong opening quarter in UK

Chemicals and paints giant ICI added to takeover excitement by announcing strong figures for the first three months of 2007 today.

Shares in the group are at seven year highs amid speculation that ICI could be targeted by Akzo Nobel as part of long-awaited consolidation in the sector.

But in the meantime ICI highlighted its own strengths as it said adjusted profits rose 12% to £101m (€148m) in the first quarter.

The performance, which included a 3% rise in sales for the company’s Dulux paints business in the UK, resulted in shares lifting another 1%.

ICI chief executive John McAdam said: “This is a pleasing set of results, representing strong underlying trading across the majority of our businesses.”

He added that the outlook for the second quarter was positive, with expectations for the year as a whole unchanged.