Orica Limited reported consolidated earnings results for the half year ended March 31, 2018. For the first half, the company's sales were $2,532.0 million against $2,437.4 million for the same period of last year. EBIT was $251.5 million against $314.2 million a year ago. Operating Profit before Tax and non-controlling interests was $197.4 million against $281.2 million a year ago. EBITDA was $378.9 million against $445.5 million a year ago. NPAT pre individually significant items were $136.8 million against $201.2 million a year ago. NPAT attributable to shareholders of company was $123.6 million against $195.2 million a year ago. Net cash flow from operating activities was $28.5 million against $154.5 million a year ago. Capital expenditure was $141.4 million against $114.2 million a year ago. Return on Average Shareholders' Funds, post Individually Significant Items was 8.7% against 14% a year ago. Negative Return on average shareholders' funds, post individually significant items was 16.2% against positive of 14% a year ago. Basic EPS - before individually significant items was 32.7 cents against 52 cents a year ago. Basic LPS - including individually significant items was 60.7 cents against EPS of 52.0 cents a year ago. Underlying EBITDA was down by 15% to $379 million and underlying EBIT was down by 20% to $252 million. Underlying impact was lower than the prior comparable period as a result of lower earnings in the half, an increased net interest expense in line with higher debt due to acquisitions and Burrup interest not being capitalized.

The company expects significantly stronger EBIT performance in the second half. Cash generation increases in capital expenditure and higher trading working capital as the company build inventory to meet expected second half demand.

The effective tax rate of 30.7% compared to 28.4% in the prior comparable period was higher due to a reduction in foreign deductions and nontaxable gains on disposal of assets plus noncreditable withholding taxes on foreign dividends. The company expects the tax rate to be around this level going forward. The company believes that the full year 2018 CapEx will be at the upper end of the guidance range of $300 million to $320 million.