Business Description:
Incitec Pivot Limited (IPL) produces and distributes fertilisers and explosives. IPL has operations throughout the United States, Canada, Mexico and Australia. IPL supplies more than 50 per cent of Australia's agricultural nutrient needs

Strategy Analysis:
IPL supplies more than 50% of Australia's agricultural plant nutrient needs, underpinning its position as a low-cost supplier. It supplies to farmers via retail channels (independent and corporate dealers and agents) and direct to farmer. Growth is also targeted through broadening the product and services offering (liquid fertilisers, finance), geographic expansion (domestic and regional) and by participating in agribusiness consolidation. IPL bought Southern Cross Fertilisers from BHP in August 2006. It acquired 13% of Dyno Nobel in August 2007, merging in mid 2008. DXL is the former Dyno North American and Australian explosives business. In explosives, IPL plans to leverage the strong demand for commodities from Asia. A key strategy is to grow the explosives business in order to reduce its reliance on the more volatile fertiliser business. Incitec Pivot reported NPAT up 33.2% to $463.2m for the year to 30 September 2011. Revenues from ordinary activities were $3.90bn, up 12.8% from last year. Diluted EPS was 28.4 cents compared to 25.3 cents last year. Net operating cash flow was $719.1m compared to $528.9m last year. The final dividend declared was 8.2 cents, taking the full year dividend to 11.5 cents compared with 7.8 cents last year. The Company reported that the next phase is to drive further shareholder value through long term productivity improvements in the existing businesses and to pursue growth options consistent with the Company's strategy and its strict financial disciplines.