ICI warns prices must be raised

CHEMICALS group ICI today warned it urgently needed to raise prices if was to offset soaring raw material costs and meet City forecasts.

Chief executive John McAdam said the outlook was generally good. 'However, further price increases will be essential if we're to continue to mitigate the impact of raw material cost increase, and meet market expectations for pre-tax profits for the year.'

Finance director Tim Scott said price rises of up to 15% had been pushed through in the National Starch adhesives and polymers operation, but more would be needed both here and in the Dulux paints business.

ICI revealed that underlying profits for the third quarter to September jumped 11% to £117m, taking the nine-months total 18% ahead to £302m. Analysts have been looking for a trading profit of £388m for the full-year to the end of December, up from £341m last time.