ICI has posted second-quarter results at the top of market forecasts to send shares in the Dulux paint maker up 7 per cent to a three-week high.
"Market conditions continued to be generally favourable in the second quarter. The trading environment is good generally, but not universally," Finance Director Mr Tim Scott said today.
ICI , Britain's biggest chemicals company, also said it would have to raise prices during its second half to offset rising raw material costs. Many chemicals firms are vulnerable as world oil prices hover close to $40 a barrel.
ICI made £118 million sterling profit before tax and exceptional items in the 3 months to end-June - analysts' consensus was for £107 million profit.
Turnover was down 6 per cent at £1.43 billion. Excluding adverse impacts from the weak dollar and disposals, second-quarter sales were up 5 per cent year-on-year.
At 9:55 a.m., ICI shares, which had outperformed European peers by 10 per cent this year, were up 6.1 per cent at 217.75 pence to value the company at £2.65 billion, having hit 220 pence earlier.