1999 Annual Report: Orica Focused on Delivering Long-Term Shareholder Value

30 November, 1999

Orica is in a strong financial position to grow its core activities and international explosives and blasting services business, despite tough trading conditions, according to its annual report, released this week.

Orica’s chairman, Dr Ben Lochtenberg, said the company’s efforts to reshape itself would pay off when market conditions finally picked up. "We are confident that the current improvement program puts Orica in a strong position when market conditions improve and will result in better shareholder returns," Dr Lochtenberg said in the annual report.

"Our management team has completed many projects in 1999, with non core divestments realising $379 million and investments and commitments for future growth totalling $690 million. We have entered into key joint ventures for our Explosives business in India, Germany and the USA. These strengthen our international presence and provide a springboard for future earnings growth as we exploit new global customers."

Dr Lochtenberg said that in addition to the major restructuring of the company’s business portfolio, management is continuing to slim down corporate support functions to provide a more effective and responsive organisation: "We are well down the track of achieving the latest savings target of $120 million in costs over two years and management will continue to initiate projects to help further improve our efficiency, continue cost reduction and better meet customer needs."

Orica’s managing director and chief executive officer, Mr Philip Weickhardt, said "Orica’s vision of ‘Winning Against the World’s Best’ is the driving force behind our strategy to ensure we continue to build the future prosperity of the company.

"Our ability to meet our vision is in the hands of our leadership team and all our people. Over the long term we have historically delivered excellent shareholder value, and with our strong and committed management team and resourceful workforce, we will continue to do so."