Orica, a commercial explosives operator, has issued a profit warning, anticipating a $300 million to $350 million impact due to substantial restructuring costs. These costs are primarily associated with its Latin American and EMEA (Europe, Middle East, and Africa) assets. The company projects a $290 million to $335 million impairment and restructuring expense specifically from its Latin American operations. Changes to the operating model in EMEA are expected to contribute an additional $10 million to $15 million to these costs.
Despite these significant restructuring expenses, Orica anticipates that its first-half earnings will be “higher than planned.” This positive outlook is attributed to robust business performance across all of the company’s operational segments. Capital expenditure is expected to remain broadly in line with the figures reported in 2024. The market will be closely watching how Orica manages these restructuring efforts and whether the strong business performance can offset the associated financial burdens in the long term.