Orica posts 22.2% rise in 2007 operating profit

12 November 2007 03:33  [Source: ICIS news]

SINGAPORE (ICIS news)--Australian mining and chemical firm Orica posted a 22.2% year-on-year rise operating profit before income tax for the year ended 30 September to Australia dollar (A$) 865.7m ($794.2m) on Monday due to growth across most business segments and increased productivity.

Sales revenue rose 3.1 % year-on-year to A$5.5bn but net profit dropped 9.5% to A$487.7m, due to a higher profit of A$158.8 recorded the year before on significant items, Orica said in a statement to the Australian Securities Exchange.

Orica’s net profit would otherwise have been up 31%, without consideration of the significant items.

“The results highlighted the continued growth of Orica’s underlying earnings, particularly in mining services, consumer products, and chemical services’ mining chemicals division which delivered record results,” Orica CEO Graeme Liebelt said.

Operating profit from the company’s Chemnet chemicals segment jumped almost four times from 2006 to A$41.8m, and total revenue for the segment stood at A$927.7m.

Orica’s Minova business posted A$61.6m in operating profit, and A$332.1m in total revenue.

The company’s mining business doubled its operating profit to A$530.4m, and recorded A$3.1bn in total revenue.

Orica expects group net profit for the coming year to be higher than that of 2007, due to an additional three months’ worth of contributions from the Minova business, eleven months contribution from its acquired Excel Mining business, and improved earnings across other segments.

($1=A$1.09)

By: Joyce Khoo
+65 6780 4359

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