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Incitec Pivot reports profit jump

Fertiliser and explosives maker Incitec Pivot increased its profit
for the six months to March 31 by 27 per cent after a better performance from its
Australian fertiliser business.

The company said in a statement that Net Profit After Tax
(NPAT) for the period was $146.4 million, compared to $115.7 million for the
same period last year.

Earnings Before Interest & Tax (EBIT) increased by 12%
or $22.5 million to $215.6 million and earnings per share (EPS) rose 24% to 8.8
cents per share.

Incitec chief executive James Fazzino (pictured) said the good result
could also be attributed to the company’s long-term strategy and its Business
Excellence (BEx) productivity program.

“BEx continued to produce results in a period when the
Company confronted challenging markets with the global mining downturn and
drought in much of Eastern Australia. BEx contributed $16 million EBIT through
manufacturing and supply chain efficiencies. In total, BEx has contributed some
$82 million since we began four years ago,” Fazzino said.

“BEx is driving plant reliability which continues to be a
key focus for our manufacturing teams. For example, at the Phosphate Hill
ammonium phosphate fertiliser complex, more than half a million tonnes was
produced during the six months.”

He added that the lowering of the Australian dollar had benefitted
the Fertilisers business and the US business.

Image: Incitec Pivot

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