Orica Ltd (ORI) is a leading Australasian manufacturer of industrial and specialty chemicals, agricultural chemicals and fertilizers, commercial explosives and mining chemicals, and other consumer products.
Recently, ORI saw its first half underlying profit rise 5% on-year to $264 million. The result matched analyst expectations.
Driving the result was a recovery in volumes across some of ORI’s markets, aided by better pricing and productivity improvements.
However, the result was impacted by the strong Aussie dollar, which wiped $17 million off the company’s earnings.
Orica said commodity demand was underpinning growth in its business, and that it expects FY11 profit to exceed FY10’s result, subject to forex movements and the rate of global economic growth.
An interim dividend of 37 cents was declared. ORI shares rose 2.5% on the day of the announcement, making it one of the better performers in the Australian share market.