Orica

Explosives maker Orica (ORI) has finally resumed its ammonium nitrate production in Kooragang Island after the Environmental Protection Agency (EPA) lifted the prevention notice last week. Orica was allowed to restart three nitric acid plants and two ammonium nitrate plants in the said area.

Fertiliser and explosives manufacturer Incitec Pivot (IPL) reports a 12.8 per cent net profit growth for the full-year ended September 30 to $463.2 million and forsee 2012 as a transition year for the business.

After the recent profit increase, Incitec expects to continue the growth of their explosives business for the year ahead as volumes increase with the mines recovered from floods.

Orica (ORI) shareholders will vote on the demerger of DuluxGroup this morning. The stock holders are expected to vote in favour of spinning off the paint business on 8 July 2010. They will be allocated shares in DuluxGroup on a one-for-one basis. Dulux Group is likely to list on the Australian stock market this Monday, 12 July if the demerger goes ahead.

Orica (ORI), the fertiliser and explosives company have lost a court dispute over a large capital gains tax bill from the sale of its pharmaceuticals business over a decade ago in 1998. The company may be forced to pay the $126 million tax bill, but the company has the opportunity to appeal against the decision of Federal Court judge Ross Sundberg. Assuming the decision stands, then in the year that Orica pays the balance of the tax bill its reported net profit will be down $192 million.

Orica (ORI), a company that is engaged in chemical, commercial explosive, plastics and decorative paints manufacturing which mainly focuses in Australia, New Zealand, South East Asia, North America and South America has successfully maintained its net profit growth as it forecasted for the present financial year. The development came despite the demand for its products dropped in the mining sector.