Orica Limited (ORI) Update

Submitted by Craig Strzelecki on 27 May, 2007 - 18:16

Orica Limited has a restricted broker call and share price target from sharemarket analyst UBS. The company's 1H07 Result is due Monday 30 April: The analyst expects reported profit of A$192m: they forecast net profit of A$192m, which equates to 46% growth in normalised EPS after deducting preference dividends and adding back an estimated A$33m in abnormal costs and acquisition amortisation. The analyst also expects an interim dividend of 33 cents per share. Strong acquisition and organic growth from mining services: They forecast continuing EBITA of A$345m, up 50% on 1H06. They see the majority of this growth coming from organic growth in Mining Services, as well as additional earnings from the Dyno and Minova acquisitions. They also expect moderate growth of 9% in the consumer and chemicals divisions. Market looking for reasons to support current share price: The analyst believes management will be under pressure to corroborate its rejection of a A$32 approach. The analyst will be looking for greater clarity on the organic growth outlook, acquisition opportunities, the environmental liabilities, the Indonesian AN licence tender, capital management to increase gearing levels, and any strategies to unlock hidden value for Orica Limited.

Orica Limited is listed on the Australian Stock Exchange (ASX) under stock code ORI. You can view their investor website here. ORI was listed on the ASX on 28 November, 1961. Orica is the world's leading supplier of commercial explosives and is also the largest chemical company in Australia and New Zealand. It manufactures and supplies commercial explosives, industrial and specialty chemicals, decorative paints, and plastics. Orica has significant operations in Australia, New Zealand, South East Asia, North and Latin America. Orica Mining Services offers commercial explosives, initiating systems and Blast-Based Services to the mining, quarrying and construction industries. The business is run globally with a presence in Australia, Asia, Europe, the former Soviet Union, Africa, the Middle East, North America and Latin America. Orica Consumer Products is Australia and New Zealand’s leader in decorative, preparation, and lawn and garden care products. The business manufactures and markets icon brands including Dulux, Berger, British Paints, Levene, Walpamur, Cabot’s, Feast Watson, Intergrain, Acratex, Selleys, Rota Cota, Poly, Turtle Wax, Yates, Thrive, Zero and Dynamic Lifter in Australia and New Zealand. Chemnet is Australasia’s leading trading and distribution solutions business, servicing more than 40 key industries. The business is based in Australia and operates in New Zealand, China, Hong Kong, Fiji, Indonesia, Thailand, Malaysia, Singapore, Peru and Chile. Chemical Services is a major supplier of chemicals, services and technology to the water treatment, mining chemical and industrial chemical markets. The business is based in Australia and has operations in the United States and the United Kingdom. Donald Mercer is the Chairman of Orica and Graeme Liebelt is the CEO. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. A past recommendation for Orica (ORI). You can use Instalment Warrants to trade ORI. Check your charts and good luck with your share trading!

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