Orica in losses in horror year

Chemicals and explosives manufacturer Orica has revealed a statutory net loss after tax for the year ended September 30 of $174 million in a horror market that the company described as ‘challenging’.

However directors reported an underlying earnings before interest and tax (EBIT) of $427 million, which was countered by a big $382 million write-down.

The company experienced numerous adverse events with China’s trade war with Australia hitting its major coal mining customers, increased raw materials costs, global freight rates jumping and shifts in foreign exchange rates.

Labour costs are rising with shortages of skilled workers and the cost of the raw material ammonia up 85 per cent in the year.

Recently appointed managing director Sanjeev Gandhi said he was proud of the performance of staff which had resulted in a significantly improved second half of the year.

Gandhi said: “With our new executive team in place, an improving business environment in our core business and future growth potential, we are confident in our ability to navigate our recovery and deliver profitable growth and returns through our refreshed strategy.”

Capital spending for the year was $323 million.

Picture: Orica

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