Explosives maker Orica Ltd has reaffirmed that profit in fiscal 2011 will be higher than 2010.

Net profit before individually material items for the 12 months to September would be higher than the year before, on a comparable basis, subject to the rate of global economic recovery and further adverse exchange rate movements. Orica reported profit from continuing operations and before material items of $618.8 million for fiscal 2010.

The company also said in a statement on Monday that the pre-tax cost of scope 1 and scope 2 emissions for the government’s carbon pricing scheme would be about $8 million. By business division, Orica said mining services volumes were reasonably strong in Australia and Asia, following nine months affected by weather.

The Minova mining and civil engineering products division continued to find conditions difficult, with a challenging market in the US and poor volumes in China.

Orica added that its growth projects – an ammonium nitrate plant in Bontang, Indonesia, an ammonium nitrate mining and plant expansion at Kooragang island and a detonator plant in China’s Hunan Province – remained on track.

Shares in Orica declined 34 cents, or 1.27 per cent, to $26.41 by 1526 AEST.

AAP