Orica expects stronger second half

Company News

by Jessica Amir

One of the world’s largest explosives and blasting companies Orica (ASX:ORI) flagged it will be impacted by a $55 million no ncash tax hit after the US federal government slashed corporate taxes.

The adjustment will be carried on its 2018 half year. And while Orica says the tax drop has a negative impact now, the ongoing tax reduction will be neutral .

Orica says its EBIT will be skewed in the second half of this year financial year, but its expecting significantly stronger operations in the second half, particularly in Australia.

The company also expects improved operational performance in Latin America and Europe, the Middle East and Africa (EMEA) on the back of snapping up GroundProbe. These division will add about $60 million in positive EBIT for the second half.

Shares in Orica are trading 5.2 per cent lower to $17.69.

Jessica Amir

Finance News Network
Jessica is a senior finance journalist and presents bulletins including the Market Outlook, Market at Midday and Market Wrap. She also interviews ASX CEOs and leading fund managers. She joined FNN in January 2017 with over six years of broadcast journalism experience including with Sky News Business, ABC 1, ABC's The Business and ABC24. She’s also worked as a TV reporter for Prime 7 and WIN News. Jessica has worked in financial planning for over six years with leading wealth managers and in real estate.