ICI overcomes cost pressures

Takeover target ICI today overcame higher raw materials costs and a tougher US market to post a 12% rise in profits.

The Dulux paint maker, which last week rejected a £7.8bn (€11.5bn) approach from Dutch rival Akzo Nobel, reported underlying pre-tax profits of £255m (€379m) for the first half of the year.

ICI – also rumoured to be a target of US Chemicals firm Dow Chemicals – said it had made a “strong start” to 2007.

Buoyant trading in Asia, Latin America and Europe helped offset a weaker US construction market in the US and higher raw materials costs for its adhesives business, chief executive John McAdam said.