Reckitt confirms interest in arm of Eastman Kodak
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Your support makes all the difference.RECKITT & COLMAN, the Dettol to Haliborange consumer products group, yesterday confirmed that it would consider making an offer for the Eastman Kodak consumer products business put up for sale by the film maker.
Vernon Sankey, chief executive, refused to be drawn on whether it was considering a bid for the group - which could cost up to dollars 1bn - but said: 'We are aware of a number of things being discussed and it would be quite wrong of me to say I didn't know anything about it.'
Sir Michael Colman, chairman, added that acquisitions of consumer goods businesses, as well as organic growth, would remain part of its strategy.
His comments came as the group revealed a 6 per cent rise in underlying profits. That failed to overcome the City's disappointment at a poor sales performance by the group and the shares fell 25p to 627p.
Mr Sankey blamed its sluggish sales on the fact that economic recovery in Europe and the US, which is benefiting some areas, has yet to filter through to its mixture of household goods, foods and over-the-counter medicines.
Sales by the group were pounds 1.04bn, down from pounds 1.07bn last time, although Mr Sankey said that, excluding exchange differences, they were roughly flat. That was only achieved because of strong performances in Australasia and Africa - in the US and Europe sales fell by up to 3 per cent.
Despite the sales performance, the group managed to improve underlying profits from pounds 143.6m to pounds 149m. At the pre-tax level, however, profits dropped from pounds 143.6m to pounds 123.3m due to a pounds 56m charge for restructuring its European operations, offset by a pounds 30m profit on the disposal of its pigments business.
Mr Sankey said the provision was to cover the cost of a three- year programme of integrating distribution, wholesaling and other aspects of its European operations.
Cost savings are expected to be at least pounds 25m a year by the end of the programme. He added that the programme may involve redundancies or factory closures.
Earnings per share were 21.8p, down from 24.62p, but the interim dividend was increased by 7.8 per cent to 6.95p.
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