CHEMICALS and paint group ICI said yesterday its sales outlook was good as it announced an 11 per cent rise in third-quarter profits but warned of further price rises to offset cost increases.

ICI, which employs about 350 staff at the Uniqema site in Wilton, on Teesside, has been restructuring.

The group said strong comparable sales growth and benefits from its shake-up more than offset the impact of rising raw material costs in the third quarter, in which pre-tax trading profits rose to £117m.

The company said that despite some signs of lower growth in electronics and reduced demand for its paint in North America, the sales outlook was good.

The company cut about 1,400 jobs last year as part of a £70m savings drive.