Orica Reports Strong Growth

Explosives and chemicals manufacturer Orica has reported a strong profit with a nearly fivefold increase in the first half net profit for the year. The net profit of $263.8 million was posted by the company for the six months till March 31, 2011. This is a 379% increase from $55 million that was posted in the first fiscal half of 2010.

The Chief Executive Officer of Orica, Graeme Liebelt said that he expected the market condition to improve over the rest of 2011. Mr Liebelt said that if they could get some issues with the weather sorted out and if their customers could realize their plans there would be stronger growth from here on.

He added that the modest improvement in overall volumes along with higher pricing and productivity have helped to achieve the result. He added that the result was delivered in external mixed conditions. He also said that the growth in demand for mining chemicals helped.

The Minova business including sales of mining equipment saw margins being reduced due to the string competition. However the sales volume increase helped the result. Despite the strong Australian dollar the chief executive is confident that the company will achieve its forecast for a higher full year profit. He said every 1 cent increase in the Aussie dollar against the US dollar would have a $3 million impact on profit. The shares of the company went up by 22 cents to end at $26.80.

Joel Scanlon

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Joel Scanlon

Joel, originally from the UK, emigrated to Australia in 1995 and spent 5 years working in the mining industry as an exploration Geo-technician where he developed skills in GIS Mapping and CAD. Joel also spent a year working underground in a gold/copper mine. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm before starting a successful business providing graphic and web design services to local businesses on the eastern seaboard of Australia. Joel is skilled in project management, content production, design, animation, database and networking, software, and editing. Joel has been with AZoNetwork since its inception in 2000.

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