ORICA has announced that it still expects to book a higher underlying full year profit despite weaker markets in the second half.
The explosives maker says that three of its four divisions, mining services, chemicals and consumer products, generated improved profits.
Orica managing director Graeme Liebelt says that seasonally the company is stronger in the second half, so the question is whether the second half of this year will be relatively stronger or weaker versus the second half of last year....
Liebelt claims that it is most likely that things will be a little weaker relatively speaking in the second half in the company’s markets, and it will need to adapt accordingly.
Liebelt says the first half result was excellent given difficult market conditions.
The deepest declines were in the quarrying, construction and infrastructure markets, in Australian manufacturing and in New Zealand. But other sectors such as gold, thermal coal and copper held up pretty well.
The company says that it is in good shape to deal with current difficulties in financial markets and had the flexibility to take advantage of opportunities should they arise.
Orica says that it was being approached by more small companies saying that they would be available for sale. The company says that a couple of smaller acquisitions could be on the agenda in the coming months.
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