Orica shares rise on improved earnings outlook
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More news: Orica shares rose on the ASX after the chemicals and explosives manufacturer said it expected second-half underlying earnings to be better than previously forecast.
Shares were up 2.2% to $18.02 by 11:20am AEST.
Orica says 2H earnings to be 'slightly better' than forecast
The news: Chemicals and explosives maker Orica said that underlying earnings for the second half of FY24 are on track to be "slightly better" than forecast.
The numbers: Orica said that depreciation and amortisation is expected to be between $425 million and $435 million. Total significant items for FY24 is expected to contribute around $120 million net profit. Capital expenditure is due to total between $450 million and $460 million.
The context: Orica announced the updated forecast as it provided details of changes to its segment reporting, following its recent acquisitions of US chemical producer Cyanco and Canadian geotechnical software vendor Terra Insights.
For FY24, Orica will segment its reporting into "blasting solutions", including the company's core production and supply of explosives and blasting systems; "digital solutions", including Terra Insights; and "speciality mining chemicals", including Cyanco.
Orica said its core blasting solutions business remains strong with continued demand for its products and services across the mining and civil infrastructure value chains and increasing adoption of its blasting technology offerings.
It said that demand also remained strong in its digital solutions business, Meanwhile, planned maintenance activities and safety upgrades at its Winnemucca plant were brought forward to this financial year, resulting in a lower full-year EBITDA contribution to its speciality mining chemicals segment than forecast.
The source: ASX announcement
