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Business Description: Orica Limited (ORI) is a manufacturer and supplier of industrial and specialty chemicals, commercial explosives and mining chemicals through over 50 countries. Orica‚Äôs products and services include mining services, mining and general chemicals and ground support services. Orica has a portfolio of manufacturing and distribution assets strategically located across Australia, New Zealand, Asia, Latin America and Africa.
Strategy Analysis: ORI¬īs main priorities are expansion of its ammonium nitrate (AN) manufacturing capacity in Australia, Indonesia and South America in order to take advantage of strong demand for explosives from the mining sector. Following the 2012 completion of the Bontang, Indonesia plant attention turns to Australia with a feasibility study underway to double capacity at Kooragang Island in NSW. ORI is also participating in a joint venture (45% share) to construct an AN plant in the in the Pilbara mining region in WA. A feasibility study is also underway into the construction of an AN plant in Peru. These expansion plans should result in strong growth over the next few years as demand from the mining industry continues to grow. In Minova, the key strategy is to try to improve returns from this underperforming business through simplifying the business model, optimisation of manufacturing and overhead rationalisation.
Orica reported NPAT down 37.3% to $402.8m for the year ended 30 September 2012. Revenues from ordinary activities were $6.67bn, up 8.0% from last year. Diluted EPS was 109.1 cents compared to 169.8 cents last year. Net operating cash flow was $544.1m compared to $758.2m last year. The final dividend declared was 54 cents, taking the full year dividend to 92 cents compared with 90 cents last year.
By Michael McCarthy (chief market strategist, CMC Markets) 19/12/2014 |
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By Betty Lam (Sales Trader, CMC Markets) 18/12/2014 |
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By Michael McCarthy (chief market strategist, CMC Markets) 18/12/2014 |
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By Betty Lam (Sales Trader, CMC Markets) 11/12/2014 |
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By Ric Spooner (Chief Market Analyst, CMC Markets) 10/12/2014 |
Yesterday‚Äôs news on Greek politics and China‚Äôs bond market came at a time when US and European stock markets have extended rallies and pushed valuations higher. This makes those markets vulnerable to downward corrections as profit takers act to avoid missing out.
BR Securities Australia Pty Ltd 2/12/2014 |
December 2014 could go down as a nasty moment in Australian finance. MYEFO will reveal a deteriorating budget deficit and the UNFCCC meeting in Lima, Peru will provide the agreement, to be ratified in Paris in 2015, on how much (or little) CO2 is to be allowed into the atmosphere from 2020.
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