Melbourne-based Orica, the world's biggest manufacturer of mining explosives, reported a 4.6% increase in its net profit for 2009/10, thanks mostly to a booming resource sector.The company, which spun off Australia and New Zealand paint manufacturer Dulux
Melbourne-based Orica, the world’s biggest manufacturer of mining explosives, reported a 4.6% increase in its net profit for 2009/10, thanks mostly to a booming resource sector.
The company, which spun off Australia and New Zealand paint manufacturer Dulux Group in July, said demand for explosives improved in the second half.
About 40% of Orica’s revenue comes from supplying explosives to coal mines in Australia and Indonesia. As ore grades decline, miners need more explosives to strip more rock per tonne of coal.
Orica’s net profit rose to $A675.8 million for the year to September 30 from $A646.1 million a year earlier.
The improved result was despite a strong Australian dollar, which has on several occasions over the last few weeks reached parity with the U.S. dollar.
Dulux separately reported a maiden net profit of A$71.5 million on a full-year basis, excluding demerger costs, and forecast a higher profit for 2010/11.
For Orica, it was its ninth consecutive increase in annual net profit, and the company said it expects the current 2010/11 year to be another improvement, subject to the rate of global economic recovery and exchange rate movement.
“All of our regions should benefit from a global recovery and the continued customer take up of electronic blasting systems and blast based services,” the company said.
Orica shares last traded at $A216.63, up $A0.93.
