Orica has predicted a better performance next year, but says the carbon tax will have a significant impact on the company.
It has estimated the pre tax cost of the carbon tax to be about $8 million.
Despite the weather conditions impacting production, Orica has reported “a pleasing result” in the Australia/Asian region, where the improving conditions in Indonesia were offset by heavy rain in the Hunter Valley and ongoing rain in Indonesia.
The company reported poor volumes in China which contribute to marginal pressures, and pointed towards a strong competition in the United States for the Minova business, which supplies chemical-based consumables, steel bolts, application and drilling equipment and services associated with rock bolting, ground consolidation, ventilation and water control to the underground mining, tunneling and civil engineering industries, experiencing “difficult conditions.”
Construction projects and improvements in Indonesia and China are progressing as planned, according to the company’s ASX report.