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 LONDON, Oct. 28 /PRNewswire/ -- Imperial Chemical Industries PLC of London, England today reported net income before exceptional items and discontinued operations of $63m for the third quarter of 1993, compared with $6m for the same quarter in 1992. Net income before exceptional items and discontinued operations per ADR was $0.35 on sales of $3.3 billion, which compares with $0.03 per ADR on sales of $2.7 billion in the third quarter of 1992.
 This brings net income before exceptional items and discontinued operations for the first nine months of 1993 to $198m, or $1.10 per ADR, on sales of $9.6 billion, which compares with $127m, or $0.71 per ADR, on sales of $8.5 billion, in the comparative 1992 period.
 Chairman's Comments
 In announcing the results, Sir Denys Henderson, chairman of the ICI Group, commented:
 "This quarter represents the first in which ICI has operated in its new form post the demerger. Substantial further progress has been made in reshaping the business including the completion of the Fibres/Acrylics deal with Du Pont and, in October, the establishment of a joint titanium pigment manufacturing venture with NL/Kronos in the USA. The welcome improvement in the results compared with last year demonstrates the benefits of the reshaping and self help programmes begun in 1990 and a more competitive exchange rate. We are also seeing the benefits of good plant start-ups for Methyl Methacrylate and Pure Terephthalic Acid in the Far East and `Klea' 134a, the CFC replacement product, in the USA. Prices remain under pressure in all business sectors. Although we are seeing a steady but unexciting recovery in the United States, difficult trading conditions continue in Continental European markets."
 Comparison with First Nine Months of 1992 - Continuing Operations
 Sales in the first nine months increased by 12 percent compared with the same period of 1992 due mainly to exchange rates as higher volumes (+3 percent) were offset by lower prices and the net impact of divestments and acquisitions.
 Paints operating income of $128m was $15m below the same period of 1992 with the continued strong growth in the Asia Pacific region being offset by the effects of difficult market conditions in North America and Europe. In Materials, income rose strongly due to improved volumes, stringent cost control and the contribution from the newly acquired acrylics business. Exchange benefits were offset by lower local selling prices.
 Explosives results were similar to last year's level as exchange benefits were eroded by start-up costs of the ammonium nitrate plant in Australia and the effects of reduced activity in the UK, Brazil and Mexico. In Industrial Chemicals, operating income more than doubled from improved volumes, reduced fixed costs and beneficial exchange rates. Selling prices overall were below last year's level.
 Regional businesses operating income increased by $32m to $62m with improved performances in all major territories, particularly in Australia.
 Comparison with Third Quarter of 1992 -- Continuing Operations
 Net income before exceptional items in the third quarter at $63m was $57m higher than last year's level. Reduced fixed costs, the benefits of favourable exchange rates and higher sales volumes (+3 percent) contributed to the improved results.
 Exceptional items in the quarter include gains on the disposal of Materials `Victrex' PEEK business and the fibres business in India.
 Discontinued Operations
 Discontinued operations comprise the operating results of the Zeneca Group to the date of demerger (1 June 1993), the operating results of Material's European nylon fibres business which was sold to Du Pont with effect from 1 July 1993, and a $109m pre-tax loss on the fibres disposal.
 Financial Summary
 The results of the Group for the third quarter and first nine months of 1993 are summarised in the following table, together with comparative figures for 1992.
 3 months ended 9 months ended
 September 30 September 30
 1992 1993 1992 1993
 $m $m $m $m
 Continuing operations 2,750 3,283 8,518 9,584
 Discontinued operations 1,430 -- 4,941 3,265
 Total 4,180 3,283 13,459 12,849
 Net income
 Continuing operations
 Net income before
 exceptional items 6 63 127 198
 Exceptional items after tax (26) 21 (26) 25
 Discontinued operations 79 - 387 177
 Net income 59 84 488 400
 Net income per ADR ($ per ADR)
 Continuing operations
 Income before
 exceptional items 0.03 0.35 0.71 1.10
 Exceptional items (0.14) 0.12 (0.14) 0.15
 Discontinued operations 0.43 -- 2.16 0.98
 Total income per ADR 0.32 0.47 2.73 2.23
 Results for all periods and other references have been expressed in US dollars at a convenient exchange rate of $1.51 to the pound, the rate prevailing on September 30, 1993. Four ICI l pound sterling Ordinary Shares are represented by each ADR.
 Results are based on United Kingdom accounting principles and arc unaudited. Under US Generally Accepted Accounting Principles (GAAP), net income for the nine months ended 30 September 1993 is as follows:
 Continuing Discontinued
 Operations Operations Total
 $m $m $m
 UK GAAP net income 223 177 400
 Adjustments to conform
 with US GAAP (171) (20) (191)
 Cumulative adjustment at
 1 January 1993 upon
 adoption of SFAS 106
 and SFAS 109 160 (8) 152
 US GAAP net income 212 149 361
 The adjustments to conform with US GAAP principally relate to pension expense, purchase accounting adjustments, deferred taxation, capitalisation and amortisation of interest and post-retirement benefits other than pensions.
 For US GAAP reporting, the Group adopted in the first quarter of 1993 Statement of Financial Accounting Standards (SFAS) No. 106 "Employers' Accounting for Post-Retirement Benefits Other Than Pensions" and SFAS No. 109 "Accounting for Income Taxes".
 Sales Operating Income
 First Nine Months First Nine Months
 1992 1993 1992 1993
 $m $m $m $m
 Continuing Operations
 Paints 1,827 1,966 143 128
 Materials 1,426 1,718 3 24
 Explosives 637 725 51 50
 Industrial Chemicals 3,918 4,209 51 124
 Regional Business 1,486 1,579 30 62
 Inter-class eliminations(A) (776) (613) 14 15
 8,518 9,584 292 403
 Continuing Operations -
 exceptional items -- -- (30) --
 8,518 9,584 262 403
 Discontinued Operations
 (1993 5 months only) 4,396 2,899 683 497
 Fibres 672 447 -- (32)
 Inter-class eliminations(A) (127) (81)
 4,941 3,265 683 465
 Total 13,459 12,849 945 868
 (A) Includes turnover between continuing and discontinued operations.
 -0- 10/28/93
 /CONTACT: Vincent Leheny of ICI (in London), 071-798-5386/

CO: Imperial Chemical Industries, PLC ST: IN: CHM SU: ERN

SH-DH -- NY024 -- 7823 10/28/93 11:02 EDT
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Publication:PR Newswire
Date:Oct 28, 1993

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