Unilever is to sell the Anglo-Dutch company's US laundry business and cut 20,000 jobs in what Patrick Cescau, chief executive, claimed was a "radical shake-up" of the consumer goods group.

Mr Cescau, who became Unilever's first sole chief executive two years ago, was unusually animated yesterday, shaking bottles of anti-dandruff shampoo as he promised a return by Unilever to "pre-eminence" in the world of fast-moving consumer goods.

"I'm going to go to the next step because I believe we are ready for it," he said. Mr Cescau said Unilever's new chief financial officer, James Lawrence of General Mills, would be "an agent of change".

Unilever's shares rose 64 pence, or 3.4 per cent, to £15.68 after the group said it would dispose of its North American laundry business and some other brands worth about €2 billion ($2.74 billion) in sales.

The laundry brands include All, Whisk and Snuggle. Unilever also reported strong second-quarter earnings.

Graham Jones, analyst at Panmure Gordon, said: "They are starting to sort the business out."

Unilever's organic sales grew 5.8 per cent in the second quarter, and the group improved underlying profit margins by 20 basis points. Unilever is also planning acquisitions. "The acquisition market may be a bit more attractive because of what is happening in the credit and equity markets," Mr Cescau said.

Unilever attributed the rise in sales and profits to better innovation.

Unilever said its US laundry brands were profitable, but believed it would produce better profits by focusing on fewer brands.

It plans more disposals, but declined to elaborate. - (Financial Times service)