3 May, 2004

Orica Limited today announced a Net Profit after tax and before significant items for the six months to March 31, 2004, of $122.2 million.

This represents an increase of 26% or $25.2 million on the corresponding period last year. This is the first time that Orica’s first Half Year NPAT has exceeded $100 million.

This profit represents a return on shareholders’ funds of 18%. Interim dividend has been increased by 28% to 23 cents per share 30% franked – a record Half Year dividend.

Orica Managing Director and Chief Executive Officer, Mr. Malcolm Broomhead, said the result again confirmed Orica’s earnings momentum resulting from increased revenue – up 11% - and continued focus on costs.

"Orica’s four business platforms continued to perform well with record results from Mining Services and Consumer Products, a strong performance from Chemicals and an improved result from Incitec Pivot Limited," he said.

"We expect the earnings momentum to continue through the Second Half given the seasonal bias to Mining Services and Fertilisers. However, the contribution of Fertilisers is subject to rain across Eastern Australia in Autumn and early Winter and there will also be some additional restructuring costs associated with a more aggressive efficiency program with respect to Mining Services operations in North America."

Mr. Broomhead said a highlight of the Half Year was the continuation of a focus on efficiency with an improvement in our total costs as a percentage of sales, coupled with low-risk value-adding growth through successful acquisitions, geographic expansion, plant development and expenditure on technology.

"Acquisitions recently announced or completed included Bronson and Jacobs food and specialty chemicals business, Yates garden care business and India Explosives and Initiating Systems. Also, with Mining Services, we announced a further expansion of production at Yarwun, moved into Siberia and made a technology purchase in South Africa," he said.

Mr. Broomhead recognised further improvement in Safety, Health and the Environment. In safety, the all worker recordable case rate (employees and contractors) is one-third less than the same period last year and regarding the environment, Orica continued to progress the management of remediation of manage projects to remediate and restore legacy contamination sites and improve the environmental performance address environmental operation of current plants.