Incitec Pivot reports profit jump

Fertiliser and explosives maker Incitec Pivot increased its profit for the six months to March 31 by 27 per cent after a better performance from its Australian fertiliser business.

The company said in a statement that Net Profit After Tax (NPAT) for the period was $146.4 million, compared to $115.7 million for the same period last year.

Earnings Before Interest & Tax (EBIT) increased by 12% or $22.5 million to $215.6 million and earnings per share (EPS) rose 24% to 8.8 cents per share.

Incitec chief executive James Fazzino (pictured) said the good result could also be attributed to the company’s long-term strategy and its Business Excellence (BEx) productivity program.

“BEx continued to produce results in a period when the Company confronted challenging markets with the global mining downturn and drought in much of Eastern Australia. BEx contributed $16 million EBIT through manufacturing and supply chain efficiencies. In total, BEx has contributed some $82 million since we began four years ago,” Fazzino said.

“BEx is driving plant reliability which continues to be a key focus for our manufacturing teams. For example, at the Phosphate Hill ammonium phosphate fertiliser complex, more than half a million tonnes was produced during the six months.”

He added that the lowering of the Australian dollar had benefitted the Fertilisers business and the US business.

Image: Incitec Pivot