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Incitec Pivot Limited has reported a net profit after tax of $12.4 million including significant items for the half-year ended 31 March 2005, compared with $16.6 million in the first half of the 2004 financial year.
Sales revenue for the half year was $439.6 million, an increase of two per cent on the 2004 first half, on total sales volumes of 1.3 million tonnes.
The reduction in profit was largely a result of robust competition in the fertiliser market, the stronger Australian dollar and higher raw material costs.
"We were pleased to retain our leading fertiliser market share in eastern Australia and grow our share of the key pasture segment," said Managing Director and CEO Greg Witcombe.
"However, our financial performance reflects a difficult start to the year, as previously indicated to the market."
Incitec Pivot will return 100 per cent of earnings to shareholders through a fully franked interim dividend of 21 cents per share, compared with 29 cents per share interim dividend in 2004.
Gearing has improved to 18.2 per cent, providing significant capacity for investment and a strong base for shareholder returns.
Looking to the future, Mr Witcombe said that earnings were strongly biased to the second half but remained dependent on seasonal weather conditions.
MEDIA CONTACT:
Neville Heydon
Corporate Affairs Manager
Tel 03 8695 4581/0408 123 160
INVESTOR RELATIONS:
James Fazzino
Chief Financial Officer
Tel 03 8695 4498
