Downturn forces ICI to cut another 1,300 jobs
Your support helps us to tell the story
As your White House correspondent, I ask the tough questions and seek the answers that matter.
Your support enables me to be in the room, pressing for transparency and accountability. Without your contributions, we wouldn't have the resources to challenge those in power.
Your donation makes it possible for us to keep doing this important work, keeping you informed every step of the way to the November election
Andrew Feinberg
White House Correspondent
The speciality chemicals group ICI is to shed a further 1,300 jobs following the downturn in demand caused by the 11 September attacks. The job losses will cost the company £120m and will include about 275 redundancies in the UK and the closure of a plant in Plymouth producing materials for the electronics industry.
The speciality chemicals group ICI is to shed a further 1,300 jobs following the downturn in demand caused by the 11 September attacks. The job losses will cost the company £120m and will include about 275 redundancies in the UK and the closure of a plant in Plymouth producing materials for the electronics industry.
ICI said a total of 625 jobs would be shed in Europe and a further 550 in North America, where the terror attacks have had a marked effect on sales of consumer products like paint. The programme of cutbacks will pay for itself in about two and a half years and bring £60m of annual savings and a £50m reduction in working capital.
ICI reported an 11 per cent fall in third-quarter profits to £108m on sales down by 5 per cent to £1.6bn. Turnover in North America fell 4 per cent in the July to September period – half of which was directly attributable to 11 September. Sales in October were "slightly below" last year's levels but Tim Scott, finance director, said ICI had "quite low visibility about what the future holds".
The results were better than expected. ICI shares rose 12 per cent to 362p.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments