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IMPERIAL CHEMICAL INDUSTRIES PLC REPORTS 1992 THIRD QUARTER AND NINE MONTHS RESULTS

 IMPERIAL CHEMICAL INDUSTRIES PLC REPORTS 1992 THIRD QUARTER
 AND NINE MONTHS RESULTS
 NEW YORK, Oct. 29 /PRNewswire/ -- Imperial Chemical Industries PLC of London (NYSE: ICI) today reported net income of $69 million for the third quarter of 1992, compared with $226 million for the same quarter in 1991. Income per ADR was 38 cents on sales of $4.93 billion, which compares with $1.27 per ADR on sales of $5.47 billion in the third quarter of 1991.
 This brings net income for the first nine months of 1992 to $575 million, or $3.22 per ADR, on sales of $15.87 billion, which compares with $813 million, or $4.59 per ADR, on sales of $16.81 billion, in the comparative 1991 period.
 Chairman's Comments
 In announcing the results, Sir Denys Henderson, chairman of ICI, commented:
 "Along with many of the major international chemical companies, we were adversely affected by the worldwide, persistent recession. The disappointing results reflect the fact that demand during the third quarter was particularly poor. The markets for materials and industrial chemicals particularly across Europe were weak and prices were under considerable pressure. These difficult trading conditions, combined with an over-valued pound, resulted in a sharp fall in ICI's pre-tax profits.
 "I said at the half year that the future world economic scene would be very uncertain. That uncertainty will continue until confidence in growth prospects is re-established. There is little expectation of improvement of trading conditions in the near term, although the recent realignment of the sterling exchange rate to more competitive levels should help in overseas markets.
 "Our priorities remain to contain costs and to maintain a strong balance sheet as restructuring activities continue apace. That will be helped by the approval recently given by the European Commission to the fibers/acrylics transactions with Du Pont. Benefits from the group reshaping program are in line with our expectations.
 "Work is proceeding on track for the proposals for the demerger of our Bioscience business."
 Third Quarter
 Group sales in the quarter were 10 percent below 1991 due to adverse exchange movements, which accounted for 6 percent of the decline and lower volumes (-2 percent), mainly in the U.K. and U.S.A.
 Pharmaceuticals operating income which was similar to last year was affected by a weak U.S. dollar and the effect of generic competition to "Tenormin," offset by growth in the newer products and a small disposal gain. Unfavorable exchange rates resulted in Agrochemcials and Seeds operating income being $6 million below last year's level.
 Specialty Chemicals and Materials results were below 1991 due primarily to poor trading conditions. In Industrial Chemicals, Chemicals & Polymers continued to suffer from falling prices and weak volumes.
 Earnings of associates have declined as the prior year results included a gain on the disposal of ICI's investment in Ellis & Everard plc.
 Nine Months
 Group sales in the first nine months were 6 percent lower than in the same period of 1991 due to the net effect of divestments (-3 percent), reduced volumes (-1 percent), adverse exchange movements (-1 percent) and lower local selling prices (-1 percent, mainly in Europe).
 Bioscience Products operating income declined by $99 million to $853 million due entirely to Agrochemicals and Seeds. Intense competition in the United States in herbicides and concerns about the restructuring of the Common Agricultural Policy in Europe have contributed to its profit decline. In Pharmaceuticals, income has increased reflecting the continued strong performance of the newer products and disposal gains. With the exception of "Tenormin," all major products enjoyed higher volume levels.
 Operating income in Specialty Chemicals and Materials at $251 million was $41 million below 1991 as the benefits arising from cost reduction programs have been offset by reduced volumes and lower prices. Paints' underlying performance remained strong as the prior year's results included a disposal gain.
 In Industrial Chemicals, operating income declined by $173 million to $71 million due almost entirely to reduced selling prices and lower volumes in Chemicals & Polymers. Tioxide's results were similar to 1991.
 Operating income in Regional Businesses decreased from income of $7 million in 1991 to a loss of $32 million this year. The deterioration reflects the continuing recession in many countries and the write-down of the Australian Ephedrine plant in the second quarter. Income from associated companies declined due to reduced disposal gains.
 Overall, disposal gains in the two periods were similar.
 Taxation
 The tax charge for the first nine months amounted to $319 million (first nine months of 1991 $425 million), representing an effective rate of 35 percent, and comprised U.K. corporation tax of $36 million (1991 $84 million) and taxation in respect of overseas and associated companies of $283 million (1991 $342 million).
 Financial Summary
 The unaudited results of the group for the third quarter and first nine months of 1992 are summarized in the following table, together with comparative figures for 1991.
 IMPERIAL CHEMICAL INDUSTRIES PLC
 Periods ended Three Months Nine Months
 Sept. 30 1991 1992 1991 1992
 Sales (in billions) $5.47 $4.93 $16.81 $15.87
 Income before tax (in millions) 349 166 1,251 913
 Net income (in millions) 226 69 813 575
 Earnings per ADR $1.27 0.38 $4.59 $3.22
 Results for all periods have been expressed above in U.S. dollars at a convenient exchange rate of $1.78 to the pound, the rate prevailing on Sept. 30, 1992. Four ICI one pound ordinary shares are represented by each ADR.
 Results are based on U.K. accounting principles and are unaudited. Under U.S. Generally Accepted Accounting Principles net income for the nine months ended Sept. 30, 1992, would have been approximately $173 million lower at $402 million. The difference represents recurring differences between UK and US GAAP particularly in respect of purchase accounting adjustments, capitalization of interest, foreign currency exchange movements and pension accounting.
 Segment Information
 (Dollars in millions)
 Group Sales Group Operating
 Income
 Nine Months Nine Months
 1991 1992 1991 1992
 Bioscience Products:
 Pharmaceuticals $ 2,026 $ 2,072 $ 676 $ 689
 Agrochemicals and Seeds 1,874 1,801 276 164
 Total (A) 3,900 3,873 952 853
 Specialty Chemicals and Materials:
 Specialties 1,714 1,682 61 64
 Paints 2,177 2,156 176 157
 Materials 2,731 2,503 -11 -23
 Explosives 703 719 66 53
 Total (A) 7,266 6,999 292 251
 Industrial Chemicals 4,963 4,201 244 71
 Regional Businesses 1,664 1,552 7 -32
 Inter-class eliminations -986 -760 -- 16
 ICI group total $16,807 $15,865 $1,495 $1,159
 (A) -- Total excludes sales within the same class of business.
 -0- 10/29/92
 /CONTACT: Bill Warelis (media), in Wilmington, 302-886-3638, or Vincent Leheny (investors), in London, 011-44-71-798-5386, both of ICI/
 (ICI) CO: Imperial Chemical Industries PLC ST: New York IN: CHM SU: ERN


GK-TS -- NY026 -- 6508 10/29/92 10:57 EST
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