Orica Plunges on Forecast Earnings Will Fall 10%: Sydney MoverDavid Stringer
Orica Ltd., the world’s largest maker of industrial explosives, fell the most in five years in Sydney trading after flagging that profit may drop 10 percent because of a weaker global market and higher costs.
The stock plunged 13 percent to A$18.19, the most since July 28, 2008. The benchmark S&P/ASX 200 index fell 0.4 percent.
Orica, one of the worst 10 performers this year among Australia’s 100 biggest companies, expects profit before one-time items in the fiscal year to Sept. 30 to be about A$585 million ($537 million), compared with A$650 million a year ago. The company also cited lower-than-expected earnings from its Indonesian unit for the cut to its profit forecast.
“We are seeing volumes flat across the world, whereas in May we expected those to be higher,” Chief Executive Officer Ian Smith said today on a conference call with analysts.