Orica (ASX:ORI) raises earnings guidance

Company News

by Melissa Darmawan

Explosives maker Orica (ASX:ORI) anticipates its financial year 2022 earnings before interest and taxes from continuing operations to increase the same period a year ago. The company said that they expect a much stronger first half than the prior year as momentum from the last quarter continued. Orica posted a full year 2021 earnings before interest and taxes of $426.7 million.

At its AGM, Orica chairman Malcolm Broomhead said “global commodity growth in copper and gold and in the quarrying and construction market is anticipated to continue and we are seeing some tightening in the explosives market. Whilst we are seeing inflationary pressures throughout the business this is effectively being managed through the rise and fall pricing structures as well as the execution of pricing increases in our contracts”.

“Earnings are expected to be weighted towards the second half, partly owing to planned manufacturing plant turnaround activity and seasonal effects in the first half. Our focus on pricing discipline and cost efficiency is expected to mitigate rising input costs”.

Shares in Orica (ASX:ORI) are trading 0.8 per cent higher at $13.98.

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