Profit after tax of ICI declines

The profit after tax of ICI Pakistan Limited has declined to Rs 972.557 million in the half-year period ended June 30, 2011 as compared to Rs 1,165.022 million earned in the corresponding period in 2010. The company's earning per shares has declined to Rs 7.01 in the period under review against Rs 8.39 in the same period last year.
The board of directors of the company in its meeting held on August 24, 2011 approved an interim dividend in respect of the financial year ending December 31, 2011 at the rate of 35 percent ie Rs 3.50 per share of Rs 10 each on the issued and paid up share capital of Rs 1.388 billion to be payable to the members whose names appear in the register of members on September 15, 2011.
According to the financial results sent to Karachi Stock Exchange, the company's net sales, commission and toll income increased to Rs 20.438 billion in the half year period ended June 30, 2011 against Rs 17.066 billion in the same period in 2010. The cost of sales increased to Rs 17.485 billion against Rs 13.920 billion.
The company's selling and distribution expenses stood at Rs 897.704 million in this period against Rs 839.534 million in the same period last year while the administrative and general expenses increased to Rs 645.905 million against Rs 535.300 million. The company's profit before taxation declined to Rs 1.491 billion in the half-year period in 2011 against Rs 1.787 billion in the same period in 2010.
On quarterly basis, the company's profit after tax declined to Rs 348.441 million translating earning per share of Rs 2.51 in the quarter ended June 30, 2011 against after tax profit of Rs 768.244 million with per share earning of Rs 5.53 in the corresponding quarter in 2010.
Meanwhile, the board of directors of ICI Pakistan Limited at its meeting held on August 24, 2011 has approved a Scheme of Arrangement for the reconstruction of ICI Pakistan by (i) separating its Paint Undertaking inclusive of the Paints Business and all assets, rights, liabilities and obligations pertaining to the Paints Business and vesting the Paints Undertaking in Akzo Nobel Pakistan Limited (AkzoNobel Pakistan) against the issue of shares by AkzoNobel Pakistan to the shareholders of ICI Pakistan and (ii) the consequent reduction in the issued and paid up share capital of ICI Pakistan.
The scheme will be processed in accordance with Section 284 of the Companies Ordinance 1984 for the sanction and appropriate facilitating orders of the High Court of Sindh. In this connection approval of the scheme will be sought from the members in general meeting of each of the two companies.