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IMPERIAL CHEMICAL INDUSTRIES PLC REPORTS 1993 UNAUDITED FIRST QUARTER RESULTS

 NEW YORK, April 29 /PRNewswire/ -- Imperial Chemical Industries PLC of London, England, today reported income before tax of $347 million for the first quarter of 1993, compared with $316 million for the same quarter in 1992, with higher operating income in both ZENECA and ICI. (Throughout the following the term group refers to the existing ICI Group. References to ICI mean the ICI Group excluding ZENECA.)
 Financial Summary
 The unaudited results of the group for the first quarter of 1993 are summarized in the following table, together with comparative figures for 1992.
 ICI GROUP
 (In millions)
 Three months ended March 31 1992 1993
 Sales $4,552 $4,962
 Income before exceptional
 items and tax 314 347
 Exceptional Items before tax 2 --
 Income before tax 316 347
 Net income 215 222
 Earnings per ADR
 - before exceptional items $1.18 $1.25
 - after exceptional items 1.21 $1.25
 Results for all periods and other references have been expressed in U.S. dollars at a convenient exchange rate of $1.49 to the pound, the rate prevailing on March 31, 1993. Four ICI 1 pound sterling ordinary shares are represented by each ADR.
 Results are based on United Kingdom accounting principles and are unaudited. Under U.S. Generally Accepted Accounting Principles (GAAP), net income for the three months ended March 31, 1993, was approximately $63 million higher at $285 million (including $150 million benefit relating to the accumulated effect of adopting new U.S. accounting standards). For U.S. GAAP reporting, the group has adopted in first quarter 1993 Statement of Financial Accounting Standards (SFAS) No. 106 "Employers' Accounting for Postretirement Benefits Other Than Pensions" and SFAS No. 109 "Accounting for Income Taxes." The cumulative adjustment at Jan. 1, 1993, included in the first quarter 1993 U.S. GAAP results, increased net income by $150 million (SFAS No. 109 $566 million credit offset by SFAS No. 106 $416 million charge before recognition of deferred tax benefit).
 The first quarter results include the effect of an increase in the pension cost reported under U.S. GAAP reflecting the impact of adverse movements in economic assumptions and the demographics for the group's pension plan in the U.K. The remaining difference between U.K. and U.S. GAAP net income relates primarily to purchase accounting adjustments, postretirement benefits other than pensions, capitalization of interest and deferred taxation.
 Chairman's Comments
 In announcing the results, Sir Denys Henderson, chairman of the ICI Group, commented: "In reviewing the year-end results, I said that the signs of recovery from recession were patchy.
 "This remains the case and I am therefore pleased to report that the group's first quarter's pretax income is up by 10 percent over that for the corresponding quarter of 1992. ZENECA has turned in a robust performance with operating income from two of its businesses, pharmaceuticals and specialties, significantly ahead of last year. ICI has maintained its operating income in market conditions that continue to be difficult, particularly in continental Europe, and has benefited from the extensive programs of self-help and cost-cutting on which it has been engaged since 1991.
 "The group as a whole enjoyed substantial gains from currency rates during the quarter.
 "While there are signs of economic recovery in some markets these have not yet led to an improvement in volume and pressure on prices in general remains. It is too early to express any definite views regarding the prospects for the full year. However, a continuing competitive pound and the restructuring programs will benefit both ICI and ZENECA."
 New Format for Group Segmental Reporting
 The first quarter's results contained in this press statement are presented using a new format for segmental reporting which reflects the previously announced reorganization of the ICI Group into ICI and ZENECA. Comparative figures have been restated to be on a consistent basis with the new format.
 Comparison with First Quarter of 1992 - Before Exceptional Items
 Group
 Group sales in the first quarter were $4,962 million compared with $4,552 million in 1992. The increase resulted from higher sales in both ZENECA (+13 percent) and in ICI (+7 percent).
 Operating income before exceptional items at $416 million was $39 million above 1992.
 ZENECA
 Sales in the first quarter were $1,685 million compared with $1,493 million in 1992. The sales increase resulted mainly from exchange gains (+14 percent) and slightly higher selling prices (+1 percent), offset by the impact of divestments (-2 percent).
 Operating income rose 13 percent to $304 million due principally to a strong first quarter performance by pharmaceuticals. Sales of "Zestril," "Diprivan," "Zoladex" and "Nolvadex" were in aggregate some 57 percent higher than equivalent sales in the first quarter of 1992, reflecting higher underlying volume growth (+33 percent), exchange benefits (+21 percent) and price increases (+3 percent).
 "Tenormin" sales were affected in the United States by generic competition and were approximately 10 percent lower worldwide than for the first quarter of 1992, reflecting a reduction in underlying volumes (-21 percent) together with a small price reduction, partially offset by exchange gains (+12 percent).
 Agrochemicals income of $55 million was below last year's level due mainly to the uncertainties of the Common Agricultural Policy reforms reducing sales volumes in Western Europe. Elsewhere, sales indications are more positive. Specialties income increased due to favorable exchange rates and an improved cost structure.
 ICI
 Sales grew by 7 percent to $3,408 million with increases in all businesses. The impact of favorable exchange movements (+9 percent) was partly offset by lower selling prices (-2 percent).
 Operating income increased by 3 percent to $112 million. In paints, operating income was down $6 million to $27 million due to lower volumes in Europe and the United States. Materials operating income was $2 million compared to income of $18 million last year, with the reduction due primarily to lower prices and volumes in European businesses which are experiencing strong competition. Operating income in industrial chemicals increased by $12 million to $37 million in 1993 as a result of continuing cost reduction and favorable exchange rates. Regional business income rose by $21 million to $30 million with improved performances in Australia and Canada.
 Income of associates at $22 million was $13 million above 1992 and included an improved contribution from AECI Ltd.
 Taxation
 The tax charge for the quarter was $112 million (1992 $92 million) representing an effective rate of 32 percent on income before exceptional items.
 Appendix I
 IMPERIAL CHEMICAL INDUSTRIES PLC
 Supplementary Information Supporting U.S. Press Release
 Segment Information (Unaudited)
 Operating Income
 Sales Before Exceptional
 Items
 First Quarter First Quarter
 1992 1993 1992 1993
 $m $m $m $m
 ZENECA
 Pharmaceuticals $563 $694 $180 $229
 Agrochemicals 516 574 76 55
 Specialties 359 371 21 30
 Trading and
 miscellaneous(A) 55 46 (9) (10)
 Total 1,493 1,685 268 304
 ICI
 Paints $590 $624 $33 $27
 Materials 730 761 18 2
 Explosives 212 227 15 13
 Industrial chemicals 1,354 1,422 25 37
 Regional business 519 538 9 30
 Inter-class eliminations (225) (164) 9 3
 Total 3,180 3,408 109 112
 Inter-group eliminations (121) (131) -- --
 ICI Group 4,552 4,962 377 416
 (A) -- Trading and miscellaneous comprises the marketing and distribution of ICI products undertaken by ZENECA, agency sales on behalf of third parties, the results of the group's insurance operations, corporate costs not allocated to businesses and inter-class eliminations.
 -0- 4/29/93
 /CONTACT: Pat Preston, 302-886-8601, or (investors) Edward C. Seage, 212-644-9274, both of ICI/
 (ICI)


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

CK -- NY059 -- 2637 04/29/93 11:58 EDT
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