Why Orica Ltd shares are sinking lower today 

Orica Ltd (ASX: ORI) was among the worst performers in today’s early trade on the ASX200, following the release of an update on the company’s outlook and review of operations – ahead of the half-year results announcement scheduled on May 7. 

The commercial explosives producer forecasted a decline in EBIT for the first half of FY 2018, due to various factors, including: 

  • A non-cash impairment on the underperforming subsidiary Minova and an increase in provisions related to environmental commitments, weighing $300 million on aggregate 
  • Maintenance shutdowns at Yarwun and Kooragang Island plants and construction issues at the Burrup plant, impacting earnings by $17 million and $19 million respectively 
  • Adverse conditions in the cyanide market, where higher input prices and increased competition are driving down the margins. 

On the upside, Orica expects full year sales volumes at the upper end of the guidance provided in November 2017, i.e. some 5% above the 3.65 million tonnes produced in 2017. 

At the time of writing, Orica’s share price is down 3.7% to $17.96. 

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.