U.K specialty chemicals company Croda International PLC (CRDA.LN) Tuesday posted a 61% rise in full-year pretax profit as sales jumped and provided an optimistic outlook for 2009 due partly to expectations of continued good demand from consumer care companies.

Signaling its confidence, the company whose oils are used in cosmetics and personal care products made by companies such as Procter & Gamble Co. (PG) and Estee Lauder (EL), increased its dividend to 19.75 pence a share, up 25% from last year.

"We've had a record year despite turbulent markets, so we're confident of making further progress in the year ahead," Chief Financial Officer Sean Christie told Dow Jones Newswires. "We've had some exposure, but we're happy with the basic drivers. It's a combination of resilient markets, particularly in consumer care, and weaker industrial markets."

In a statement for the full-year to Dec. 31, the East Yorkshire, England-based company said pretax profit from continuing operations rose to GBP98.4 million from GBP60.8 million a year earlier on strong demand in its core markets and its ability to offset cost inflation through increased prices. Sales rose 19% to GBP956 million.

Consumer care sales were up 46% to GBP113.9 million during the fourth quarter, and overall trading remained robust despite its industrial specialties operations - which make polymer, lubricant and coatings additives - booking a 15.7% fall in sales, the group said.

Still, at 0855 GMT, the group's shares were down 6.1%, or 32 pence, at 492 pence, underperforming a 1.4% decline in the FTSE 250. The stock had risen in anticipation of the results, but is down 9.1% in the year to date.

Cazenove analysts said the results had held up well on the back of buoyant demand and robust pricing, but warned that further falls in consumer spending could impact its markets and it could struggle to push through any more substantial price increases. The brokerage has an inline rating on the stock.

Christie saidthe company is betting on continued demand from the health and home sectors, which he thinks won't be affected by weakening consumer confidence or economic downturns. The company will also benefit from continued sterling weakness as 90% of its sales are outside the U.K., he said.

The CFO said the group currently had no disposal or acquisition plans, and would focus on organic growth.

 
   Company Web site: www.croda.com 
 
   -By Monica Mark, Dow Jones Newswires; 44 207 842 9295; monica.mark@dowjones.com

(Kim Vlach in London contributed to this article.)