Fertilizer maker Incitec Pivot Ltd
(ASX:IPL) has announced a 33% jump in first half profit to just over $132 million.
Excluding material items, the result was down 14% to $146.2 million.
Earnings before interest and tax were down 15% at just over $230 million, but earnings before interest and tax in its explosives business increased 3% to just over $133 million.
Managing director and CEO James Fazzino says the result was sound considering external impacts such as a higher Aussie dollar, lower fertiliser prices and the soft US economy leading to lower volumes in North America.
Looking ahead, Mr Fazzino says the business is likely to continue to experience challenging external financial conditions in the short term, but he is confident profitability will improve in the longer term.
He says Australian farmers have started planting crops such as wheat, barley and canola, and domestic fertilizer demand will depend on sufficient rain and gains in the Aussie dollar.
The board has declared an unfranked interim dividend of 1.8 cents per share.
For the 12 months to September 30, 2009, Incitec Pivot posted a loss of almost $180 million.
