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Monday, May 2, 2011

Australia's Orica expects to achieve year profit growth

Australian explosives maker Orica reaffirmed on Monday it expects its full-year profit to top last year, despite a subdued first half, when floods hit demand from coal mines and competition hurt its mining technology business. Orica reported a 5 percent rise in first-half profit, slightly better than expected, with a slow recovery in volumes and slightly higher prices helping to offset the impact of a soaring Aussie dollar. Orica's shares initially dipped after the result then rose 2.6 percent in late trade, outperforming a broader market that was up marginally . "On the explosives business they should enjoy quite a good improvement once they get past the flooding issues," said Peter Chilton, an analyst at Constellation Capital Management.

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