By Rhiannon Hoyle
Incitec Pivot said its explosives business is performing better than projected versus company guidance, counterbalancing its fertilizers business, which is running below expectations.
Overall, the group’s financial performance remains broadly in line with outlook comments provided in May, Incitec Pivot said late Monday.
“Dyno Nobel Americas’ focus on price and cost discipline in the explosives business has favorably impacted margins in the second half of the year,” the company said.
Whereas, fertilizer margins “remained depressed as a result of selling products into a negatively trending market and farmers switching to lower margin products,” it said.
The company expects earnings in its fertilizers distribution business to be at the lower end of a usual range of 40 million Australian dollars ($26 million) to A$60 million.
Incitec Pivot also downgraded full-year output guidance for its Phosphate Hill plant, to 870,000-880,000 metric tons from 900,000-930,000 tons, citing maintenance work. The impact to fiscal 2023 earnings before interest and taxes will be about A$13 million-A$15 million, it said.
The company is continuing to pursue a potential sale of its fertilizers business, and said the planned sale of its Waggaman facility to CF Industries remains conditional on approval from the U.S. antitrust regulator.
Write to Rhiannon Hoyle at [email protected]
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