British chemicals firm Imperial Chemical Industries (ICI) announced today it beat forecasts with an 8 per cent increase in first-quarter profit as it unveiled plans to cut 2,300 jobs.
ICI made £91 million underlying profit before tax in the first quarter of 2006, up from £84 million a year earlier and ahead of analysts' forecasts averaging around £80 million.
ICI, which makes Dulux paint, said it planned the job losses as part of a programme to cut £170 million of annual costs by 2011.
UBS analysts said the uplift had been driven by the group's paint business and its starch business, which makes everything from food ingredients to adhesives.
ICI shares jumped 5.7 per cent to 391 pence early this morning, valuing the group at around £4.6 billion.
