Nov. 10 (Bloomberg) -- Orica Ltd., the world's largest explosives maker, forecast its eighth straight year of profit growth on expectations a global economic slowdown won't trim demand from mining companies.

Net income rose 11 percent to a record A$567.3 million ($382.4 million) in the 12 months ended Sept. 30, the Melbourne- based company said today in a statement. Profit this year is expected to gain and demand is expected to be ``robust,'' Chief Executive Officer Graeme Liebelt said today.

Orica's plans to boost output of ammonium nitrate, the key explosives ingredient, at three locations are unchanged, Liebelt said, as he bets demand for raw materials from developing nations will continue. China yesterday pledged a 4 trillion yuan ($586 billion) stimulus plan to prop up growth in the fourth- largest economy as the world heads toward a recession.

``There will be a slowdown in places like China, but that slowdown won't be a particularly deep one,'' Liebelt said today on a call with reporters. ``Part of that is because we believe China has plenty of degrees of freedom with respect to its policy responses.''

Orica rose 5.5 percent to A$18.36 on the Australian stock exchange at 4:10 p.m. Sydney time. The stock has slumped 41 percent this year, compared with the 35 percent fall in the benchmark S&P/ASX 200 Index.

Earnings at its mining services unit rose 11 percent to a record in fiscal 2008, Orica said today. The unit is Orica's biggest, contributing 60 percent of earnings.

Orica's exposure to iron ore production is limited, Liebelt said today, as mining companies including Rio Tinto Group, Brazil's Cia. Vale do Rio Doce and Fortescue Metals Group Ltd. cut output of the commodity on slowing demand from Chinese steelmakers.

``Our view, perhaps optimistically and we will of course watch it carefully, is that China can manage its way through this and maintain growth at reasonable levels, perhaps even at around that 8 percent number,'' Liebelt said. ``A lot of our demand is generated by coal which is going into energy as well as steel and that demand ought to be fairly steady.''

Second-half profit rose 14 percent to A$315.1 million, the company said.

To contact the reporter on this story: Madelene Pearson in Canberra on mpearson1@bloomberg.net

Last Updated: November 10, 2008 00:52 EST