After the "boom" most petrochemical companies enjoyed during 1995, 1996 looks like being much tougher. Among those reporting significantly reduced results for the first half of 1996 is ICI PLC (9 Millbank, GB-London SW1P 3JF). While the group achieved a 4% increase in turnover for the first half of 1996, pre-tax profits were down 28%. Volumes were down 1% overall, although they were up in all regions except Europe which was down 9%. To put the group back on track for its profit target for end 1997, it has accelerated its programme of restructuring which will lead to 300 job losses in its acrylics operations. Demand for acrylics has been weak in Europe and the underperformance of the sheet and polymer business will result in further rationalisation at ICI's Darwen / UK site and the London headquarters for the downstream business will be closed.

For its PET and PTA business ICI reported that there has been significant price erosion because of weaker demand and Chinese import restrictions. Its films business saw volumes down across all markets but sales prices were significantly ahead, partly reflecting the focus on more differentiated products.

READER SERVICE: ICI's first half year 1996 group results (English): PIE-No. 39641.