Explosives Lift Orica to Profit, Mining Services Drag

Orica Limited has lifted profit by 49 per cent to $602 million for the the year to September despite a weakness in demand for mining services.

A strong contribution from explosives helped keep earnings steady at $1.269 billion. Orica recorded full year sales revenue of $6.9 billion, up 3 per cent.

The company expects profit this current financial year to be better than 2013.

Growth in explosives is expected to continue from the Pilbara in the North West of Australia, former Soviet states and Africa.

And there’s been higher demand from metals markets in Canada and South West USA.

But lower volumes in North East Australia, weak demand from eastern USA coal markets, lower volumes in Latin America due to weak demand in Brazil and strikes in Colombia, and weaker volumes in Indonesia.

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