Explosives company Orica announces $1.65 billion of write-downs and its stock is getting hammered

China Photos/Getty Images

Orica lowered its profit outlook and announced write downs of up to $1.65 billion as the global downturn in mining and an oversupply of ammonium nitrate impacts the explosives group.

It said profit for 2015 would be 10% to 15% lower than $490 million, the consensus of broker analyst forecasts.

The company says it expects to recognise a non-cash impairment charge between $1.35 billion and $1.65 billion after tax in its 2015 full year financial results.

CEO Alberto Calderon says market conditions remain extremely challenging.

“There is an increased need to further reduce costs and increase efficiency,” he says.

A short time ago, Orica’s shares were down more than 14% to $16.11.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.