Orica Ltd
(ASX:ORI) says the rising Australian dollar has not prevented it from beating last year's profit in the first two months of its financial year, helped by cost cutting.
Managing director Graeme Liebelt has said that the explosives, paint and chemicals supplier can see some patches where trading conditions are improving, but said recovery is not yet broad based.
He said the U.S. markets as still pretty soft with very little benefit from the stimulus efforts with thermal coal in the US still fairly subdued and power stations remaining heavily stocked.
Locally, Mr Liebelt said that the company’s consumer products business, DuluxGroup, was benefiting from government spending on schools and other capital works.
Orica maintained its 2010 guidance of a slight increase on 2009 full year profit.
Orica reported a 2009 net profit of $541.8 million for the year to September 30.
