Orica shares jump on better-than-expected earnings
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More news: Shares in Orica have jumped nearly 7% to $17.92 after the chemicals and explosives maker reported better-than-expected half year results.
While the company reported a headline loss following writedowns related to impairments and restructuring at its Latin American and EMEA businesses, earnings excluding the significant items were up 34% to $472.3 million. The company also reported growth in all regions and all three segments.
RBC Capital Markets analyst Owen Birrell said the performance was a solid result, with a stronger Asia Pacific contribution offsetting a softer North American result.
Orica swings to first-half loss after impairments
The news: Chemicals and explosives maker Orica has posted a first-half loss following writedowns related to impairments and restructuring at its Latin American and EMEA businesses.
The numbers: The company reported a net loss of $89 million for the six months to March, down from a $337.5 million profit a year ago. The result included after-tax writedowns of $340 million due to impairment and restructuring costs in the Latin America blasting solutions business, and in the Europe Middle East Africa business. It will pay an interim dividend of 25 cents a share, up from 19 cents a year ago.
The context: The company said excluding the significant items, earnings before interest and tax were up 34% to $472.3 million, with growth in all regions and all three segments on the back of strong customer demand, increased contributions from advanced technology offerings and continued commercial discipline. Orica expects full-year earnings to be higher from the previous year, with depreciation and amortisation expected to be at the lower end of $490 million to $510 million range and net financing costs likely to remain between $190 million to $200 million.
"Orica is well-positioned to navigate the current geopolitical uncertainties, leveraging our global scale, supply and manufacturing network. Despite trade uncertainties and geopolitical risks, our strong performance highlights our resilience and ability to adapt and optimise, with our global manufacturing and supply chain network being a significant competitive advantage,” CEO Sanjeev Gandhi said.
The source: ASX
