Orica Says Profit Rises 70% After Buying Dyno Assets (Update1)
By Madelene Pearson
April 30 (Bloomberg) -- Orica Ltd., the world's largest explosives maker, said first-half profit jumped 70 percent after it spent $1.3 billion buying businesses to expand sales to mining companies.
Net income rose to A$221.4 million ($183.4 million), or 62.2 cents a share, in the six months ended March 31, from A$130.4 million, or 41.4 cents a share, a year earlier, the Melbourne-based company said today in a statement. Sales rose 4 percent to A$2.7 billion.
The increase may support the company's rejection of a A$9.95 billion takeover bid led by private equity groups Bain Capital Partners and Blackstone Group LP as too low. Orica said today full-year profit will be ``significantly higher'' than a year earlier as it benefits from recent acquisitions.
``The record result from mining services underscores strong trading conditions in the global mining and resources market,'' the company said. ``We believe this trend will continue as customers in the resources sector strive to increase their volume of output, both from existing and new mines.''
ORI Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
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