Croda profit fades 14%, increases divi

28th Jul 2009 07:55

Chemical firm Croda revealed a 14% drop in interim profit after making a loss at its industrial specialties division but said it is confident of making overall good progress for the rest of the year.The group saw good growth in its core consumer care business. Commenting on the results chairman Martin Flower said, "Our core Consumer Care business continues to demonstrate resilience with another period of strong growth in sales, profits and margins."The impact of a fall in glycerine prices and significant year-on-year declines in Industrial Specialities depressed overall performance, Croda explained, although the division is now showing signs of recovery by breaking even in the second quarter and recording a profit in June, it added.Profit before tax and exceptionals fell to £43.6m for the six months to 30 June 2009 from £50.6m the year before. Revenue for the period fell 3.6% to £447.5m.Croda said it is increasing the interim dividend by 4.8% to 6.5p per share to reflect its confidence in the underlying strength of the business.