Orica (ASX: ORI), the world's top maker of explosives for mines today announced a net profit after tax and individually material items of $1,319 million for the full year ended 30 September 2010, up $777 million on the previous year. Individually material items in 2010 were a profit after tax of $643 million.

Net profit after tax before individually material items was a record $676 million, up 5 per cent compared with $646 million in the previous corresponding period (pcp). The 2010 result includes earnings from DuluxGroup up to 9 July, 2010 (date of demerger), compared to a full year contribution in 2009. This is the ninth consecutive year of profit growth.

Net profit after tax from continuing operations (excluding DuluxGroup) before individually material items was $619 million (pcp $557 million)

Orica has declared a final dividend of 54 cents per ordinary share, fully franked due to the impact of the settlement of the Pharmaceuticals tax case (franking capacity is expected to revert in the near term to approximately 40 per cent) .

Earnings per share (EPS) before individually material items was 185.6 cents, up 6 per cent on the pcp.

Orica chief executive Graeme Liebelt said "Orica Mining Services achieved a record result with EBIT up 4 per cent to $768 million. This was achieved despite adverse foreign exchange conditions, poor demand in Europe and unseasonal wet weather in Australia and Indonesia. The business achieved strong growth in electronic blasting systems, up 32 per cent, and delivered $51 million in productivity and efficiency benefits.

"All of our regions should benefit from a global recovery and the continued customer take up of electronic blasting systems and blast based services.

"The Minova business delivered an increase in EBIT of 2 per cent to $147 million in difficult trading conditions. This improvement results from improved margins in the US steel bolts business and greater penetration in the Chinese markets.

"Chemicals achieved a record result with EBIT up 10 per cent to $188 million. There has been a steady recovery in chemical markets in Australia, significant business improvement in Latin America and an overall disciplined performance by the business in productivity management.

"In Mining Chemicals, demand for sodium cyanide remains strong and sales volume was up 17 per cent versus the previous year. Demand from gold producers is expected to remain solid, justifying our decision to undertake a further uprate in capacity.

Mr Liebelt said "We expect Group net profit after tax (pre individually material items) in 2011 to be higher than that reported in 2010, on a comparable basis, subject to the rate of global economic recovery and extent of further adverse movements in exchange rates."

Orica said its new ammonium nitrate plant in Indonesia is set to be completed in late 2011, about three months behind schedule but below its budget of $550 million

"At this point it looks like coming in a bit under budget," Mr Liebelt told reporters after the group released its annual results on Monday.

He said Orica was looking at a few potential acquisitions, and would only need to raise equity to fund a deal if it were worth more than about A$1 billion.

With Reuters