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IMPERIAL CHEMICAL INDUSTRIES PLC 1991 GROUP ANNOUNCES RESULTS & DIVIDEND

IMPERIAL CHEMICAL INDUSTRIES PLC 1991 GROUP ANNOUNCES RESULTS & DIVIDEND
 NEW YORK, Feb. 27 /PRNewswire/ -- Imperial Chemical Industries PLC of London, today reported income before extraordinary items of $159 million for the fourth quarter of 1991, compared with $19 million(A) for the same quarter in 1990. Income before extraordinary items was $0.89 per ADR on sales of $5.69 billion, which compares with $0.09(A) per ADR on sales of $5.77 billion in the fourth quarter of 1990.
 This brings income before extraordinary items for the full year 1991 to $1,014 million, or $5.71 per ADR, on sales of $23.35 billion, which compares with $1,081 million(A), or $6.16(A) per ADR, on sales of $24.13 billion, in 1990.
 (A) -- Restated to reclassify as an exceptional item (and therefore charge against income before taxation) the fourth quarter 1990 extraordinary charge of $77 million pretax, relating to restructuring the tioxide business.
 Full Year
 Income in 1991 benefited from good results in pharmaceuticals, agrochemicals, paints and explosives and vigorous action to reduce costs overall.
 Group sales were 3 percent lower than in 1990. Lower sales volume (-4 percent) in industrial markets worldwide and adverse exchange movements (-2 percent) were partly offset by increased local selling prices (+1 percent) and the effect of acquisitions less disposals (+2 percent).
 Bioscience operating income increased by $155 million to $1,275 million in 1991. Pharmaceuticals had another record year; strong growth in the newer products led to an operating income increase of 10 percent to $1,006 million. Agrochemicals also performed well in mixed market conditions, with operating income benefiting from lower costs.
 Cost reduction programs in specialty chemicals and materials helped to offset the effects of the recession but results were still unsatisfactory. Paints and explosives had a good year despite weak conditions in many markets.
 In industrial chemicals operating income declined by $131 million to $252 million despite lower costs. This reflected much reduced sales volumes and margins in chemicals and polymers, partly offset by operating income from tioxide, following its acquisition in December 1990.
 Income before tax from associated companies decreased from $288 million to $56 million due to the disposal of ICI's shareholding in Enterprise Oil plc in 1990, the consolidation of tioxide results within operating income in 1991 and the difficult market conditions experienced by European Vinyls Corporation.
 Fourth Quarter
 Cost-cutting measures helped most businesses to counter the lack of demand experienced in many world markets. Pharmaceuticals recorded strong growth and results in agrochemicals, specialties and materials also improved compared with the same period in 1990. Further weakness in trading conditions in industrial chemicals led to a loss in chemicals and polymers which was offset by the inclusion of tioxide results. Performance in regional businesses was unsatisfactory, most of the $47 million operating income in the quarter being due to disposal gains in Asia Pacific.
 Taxation
 The tax charge for the year was $522 million (1990 $628 million) representing an effective tax rate of 33.1 percent, and comprised U.K. corporation tax of $54 million (1990 $127 million) and taxation in respect of overseas and associated companies of $468 million (1990 $501 million).
 Financial Summary
 The results for the fourth quarter and the full year of 1991 are summarized in the following table, together with the restated comparative figures for 1990.
 IMPERIAL CHEMICAL INDUSTRIES PLC
 Periods ended Three months 12 months
 Dec. 31 1991 1990 1991 1990
 (Restated) (Restated)
 Sales (in billions) $5.69 $5.77 $23.35 $24.13
 Income before tax (in millions) 262 80 1,576 1,750
 Income before extraord.
 items (in millions) 159 19 1,014 1,081
 Net income after
 extraord. items(in millions) 159 -595 1,014 1,253
 Earnings per ADR
 before extraord. items $0.89 $0.09 $5.71 $6.16
 Earnings per ADR after
 extraordinary items 0.89 -3.39 5.71 7.15
 Results for all periods have been expressed above in U.S. dollars at an exchange rate of $1.87 to the pound sterling, the rate prevailing on Dec. 31, 1991. Four ICI 1 pound ordinary shares are represented by each ADR. Details of the results analyzed by class of business are set out in the appendix.
 Results are based on United Kingdom accounting principles and are unaudited. Under U.S. generally accepted accounting principles income before extraordinary items for the year ended Dec. 31, 1991, would have been approximately $282 million lower at $732 million. The difference represents recurring differences between the U.K. and U.S. GAAP particularly in respect of purchase accounting adjustments, capitalization of interest, deferred tax and pension accounting.
 Dividends for 1991
 The board has declared a second interim dividend of 34 pence per 1 pound ordinary share, which the annual general meeting will be asked to confirm as the final dividend for 1991. This, together with the first interim dividend of 21 pence, makes a total dividend of 55 pence for the year.
 The current income tax convention between the U.K. and the United States includes provisions which, in effect, allow many U.S. resident ADR holders to receive this dividend gross of United Kingdom advance corporation tax, less a withholding tax which may, subject to certain limitations, be offset against U.S. federal taxes on certain overseas income.
 For ADR holders able to benefit fully under these arrangements, the total dividend of 55 pence per ordinary share would represent $5.49 per ADR using the conversion rate of 1 pound equals US$1.87.
 The record date for the 1991 second interim dividend payable to ICI ADR holders is March 19, 1992, and payment will be made through Morgan Guaranty Trust Company on May 4, 1992. ICI ordinary shares are expected to trade ex-dividend on the London Stock Exchange from March 9, 1992; ICI ADRs are expected to trade ex-dividend on the New York Stock Exchange from March 13, 1992.
 It is the usual practice of Imperial Chemical Industries PLC to pay the annual dividend in two installments. The first interim dividend was announced with the half-year results and paid in October. The second interim dividend subsequently becomes the final dividend once it has been approved at the annual general meeting. In recent years, ICI has paid the following dividends on ordinary shares:
 1986 1987 1988 1989 1990 1991
 First interim dividend (pence) 14 16 18 21 21 21
 Second interim/final dividend
 (pence) 22 25 32 34 34 34
 Total 36 41 50 55 55 55
 Chairman's Comments
 In announcing the results, Sir Denys Henderson, chairman of ICI, commented:
 "Despite the severe worldwide recession, we have achieved record profits in pharmaceuticals and paints and good results in agrochemicals and explosives. Our other businesses have been significantly affected by difficult trading conditions, but nevertheless group cash flow has remained positive and the balance sheet is strong.
 "Progress with the ongoing group reshaping program is fully in line with expectations and 1991 operating income has benefited by over $260 million.
 "Most of the major world economies exited 1991 on a disappointingly flat note and there is, as yet, very little sign of economic growth resuming in the OECD countries. It is now clear that all the major chemical companies are being adversely affected by the worldwide recession and the commodity chemicals cycle may not pick up until 1993.
 "There is therefore little doubt that the coming months will continue to be difficult for most countries and it would not be prudent at this stage to attempt to predict when recovery might begin. When it comes, it is very likely to be gradual. We are confident, however, that ICI is well-positioned to benefit from the upturn as a result of the measures which we are taking to improve our performance."
 Restatement of 1990 Results
 The results for the fourth quarter and year 1990 have been restated to reclassify, as an exceptional item, the ICI share ($77 million, less tax relief of $4 million) of a provision, previously accounted for as extraordinary by Tioxide Group Ltd. while it was as an associated undertaking. This restatement is in accordance with the clarification of the accounting treatment of restructuring costs issued by the U.K. Accounting Standards Board and has the effect of reducing 1990 income before tax from $1,827 million to $1,750 million and earnings per ADR before extraordinary items from $6.57 to $6.16.
 IMPERIAL CHEMICAL INDUSTRIES PLC
 Segment Information
 ($ in millions)
 Group
 Group Sales Operating Income
 1991 1990 1991 1990
 Class of Business
 Bioscience products
 Pharmaceuticals $2,970 $2,646 $1,006 $914
 Agrochemicals and seeds 2,552 2,547 269 206
 Total 5,522 5,193 1,275 1,120
 Specialty chemicals & materials
 Specialties 2,367 2,455 65 101
 Paints 2,970 3,065 221 202
 Materials 3,809 3,998 -37 -19
 Explosives 1,002 954 101 94
 Total(A) 10,068 10,422 350 378
 Industrial chemicals 6,754 7,085 252 383
 Regional businesses 2,330 2,713 54 43
 Inter-class eliminations -1,322 -1,279 -- --
 ICI Group total 23,352 24,134 1,931 1,924
 (A) -- Totals exclude sales within the same class of business.
 -0- 2/27/92
 /CONTACT: Vincent Leheny, 212-644-9274, or Bill Warelis, 302-886-3638, both of Imperial Chemical Industries/
 (ICI) CO: Imperial Chemical Industries PLC ST: New York IN: CHM SU: ERN


CK-TO -- NY020 -- 3225 02/27/92 11:30 EST
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