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 joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter.