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.