Business Description:
Orica Limited (ORI) is a manufacturer of industrial and specialty chemicals, commercial explosives and mining chemicals in Australasia. Following the 2010 demerger of the consumer products business, DuluxGroup, ORI has three business groups; Mining Services, Orica Chemicals and Minova.

Strategy Analysis:
Priorities are expanding AN manufacturing capacity in Australia, Indonesia and South America, capital management, bolt-on acquisitions, and extracting benefits from recent acquisitions. Cost reduction is ongoing. The emphasis on financial returns means capital will be allocated to business units that can achieve superior returns. ORI is seeking leading market share positions which can enhance returns. ORI's strategy is to gain market leadership in niche chemically-based markets, focusing on technical innovation, productivity and cost control. ORI acquired Dyno's rest-of-world explosives business in late 2005. The company sold its fertilizer subsidiary Incitec Pivot in mid 2006 but then bought Minova Mining Services later that year and followed this up with the purchase of Excel Mining Services in late 2007. In July 2010 ORI demerged DuluxGroup, which shares little synergy with its mining services businesses. Orica reported NPAT down 5.0% to $642.3m for the year ended 30 September 2011. Revenues from ordinary activities were $6.18bn, down 5.5% from last year. Diluted EPS was 169.8 cents compared to 124.1 cents last year. Net operating cash flow was $758.2m compared to $803.7m last year. The final dividend declared was 53 cents, taking the full year dividend to 90 cents compared with 95 cents last year.