Summary: Orica, the world’s biggest manufacturer of industrial explosives, is making more explosives to generate broadly the same level of revenue while margins are squeezed as customers demand better prices. Analysts’ views are spread widely between buy, hold and sell.
Key take-out: As long as miners use explosives, Orica’s services will be required – but at what price, is the question keeping the acting CEO awake at night.
Key beneficiaries: General investors. Category: Blue-chips.