Britain's Imperial Chemical Industries (ICI) today announced plans to cut 1,400 jobs.
The announcement came as it posted a 21 per cent fall in first-half profits that came in above market expectations.
The maker of Dulux paints also unveiled the next major stage of the restructuring of its businesses, aimed at saving more than £100 million sterling ($162 million) by 2005.
Pre-tax profit before exceptionals and goodwill for the half year to June 30th fell to £150 million from £191 million last year. Analysts had expected profits of £132 million to £146 million.
ICI said its latest round of cost cuts would result in exceptional cash expenditure of around £117 million and non-cash asset writedowns of £61 million, giving a total exceptional charge of about £178 million.
The plans will require some £39 million of capital expenditure and are expected to deliver savings of about £80 million in 2005, rising to £85 million in 2006.
ICI's shares, down 39 per cent in 2003, closed at 140-1/4 pence yesterday, valuing the company around £1.66 billion.