 ICI says sales growth has slowed recently |
Chemicals giant ICI has warned of slowing sales growth due to the rising cost of raw materials. Despite reporting a rise in first quarter profits, ICI said its outlook was "less certain" and prices would need to rise to offset cost rises.
Pre-tax profits totalled �84m ($160m), 33% ahead of the same period last year, as sales of starch and paint rose.
Shares in ICI - best known for its Dulux paint - fell 4.5% in early trading after the announcement.
The company employs about 35,000 people worldwide.
Cost savings
ICI said sales and earnings had benefited from a rise in prices and cost savings from restructuring.
It said it expected trading in the rest of the year to be "satisfactory", as long as conditions remained favourable.
"Sales growth slowed as the quarter progressed, suggesting weakness in a number of market sectors, particularly in Europe," said chief executive John McAdam.
As well as paints and starch, ICI manufactures food flavourings, fragrances, lubricants and personal care products.
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Sales growth slowed as the quarter progressed
