Imperial Chemical Industries PLC reported third-quarter earnings of $223 million, up from $151 million a year earlier. The results reported in pounds sterling were converted to U.S. dollars at an exchange rate of $1.44 to the pound, the rate prevailing on Sept. 30, 1986.
Income expressed in terms of American Depository Receipts was $1.37, up
from 98 cents. ADRs, quoted on the New York Stock Exchange, equal four units of ICI ordinary stock.Third quarter sales were down to $3.47 billion from $3.65 billion a year earlier.
"Group profit before tax in the first nine months was up $16 million from the same period last year, following a stronger than usual performance in the seasonally weak third quarter and the progressive recovery of profit margins in most of the businesses benefiting from the oil price reductions earlier this year, Sir John Harvey-Jones, chairman, said.
He pointed out, however, that profits in the agriculture segment fell as a result of the international weakness of the farming industry and the low world prices for ammonia and its derivatives. The oil business suffered as a result of the steep fall in oil prices. "Group sales of chemicals in the first nine months at $10.27 billion were 4 percent down on the first nine months of 1985. The fall in value of the U.S. (and Canadian and Australian) dollar was the overriding factor in the overall decline in Group sales, the ICI chairman said.
Group profit before tax for the third quarter was $369 million, the highest ever for a third quarter and only $17 million below the second. Given the problems in oil and agriculture, this reflects a strong performance by the other businesses, he added. Compared with the second quarter, Group chemical sales were down 4 percent to $3.38 billion, the reduction being primarily due to lower sales volume, although this represented a less-pronounced seasonal downturn than usual.