Industrial explosives maker Orica Ltd
(ASX:ORI) has reported a 75% drop in first half profit and announced a proposed demerger of its DuluxGroup business.
The company booked a profit of $55.1 million for the six months to March 31, compared to the $220.4 million it posted for the same period a year before.
Managing director Graeme Liebelt says it was a difficult first half, but the work the company has done to control costs, cash and margins leaves it well placed to capitalise on the market recovery.
Mr Liebelt says markets have generally been soft except in Latin America and Asia which saw improved conditions, but demand was weaker in Australia from thermal and metallurgical coal markets, partly to severe rain in Queensland.
Excluding material items, net profit after tax was $293 million, up 11% on 2009.
Revenue for the half year fell 19% to $3.226 billion.
For the 12 months to September 30, 2009, Orica reported a profit of $541.8 million.
