CHEMICALS company ICI has reported a huge fall in profits.

The company, which was once one of the largest in the UK, made a pre-tax profit of £293 million last year, down from £518 million in 1997.

The paints-to-petrochemicals group warned of continuing uncertainty this year, but pledged its priority remains restoring the group's unhealthy balance sheet.

ICI ended 1998 with debts of £4.2 billion after more than a year of sell-offs aimed at focusing on its speciality chemicals business.

Since May 1997 the group has sold off £3.5 billion pounds worth of business, £1 billion of which was sold last year.

The slimmer ICI saw turnover of £9.28 billion in the 12 months to December 31, down from £11.1 billion the previous year.

Chairman Sir Ronald Hampel said: "Looking forward, our expectations for 1999 are for continuing uncertainty and lower growth in many parts of the world, which will further impact our bulk chemical business.

"However we were encouraged in the fourth quarter to see the ongoing strength of the U.S. economy, signs of greater stability in some Asian markets and a slight softening of sterling."

Sir Ronald added that the disposals programme was moving ahead although he voiced disappointment that three sales which the group had hoped to make last year were not completed.

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