Orica Ltd., the largest industrial explosives maker in the world, posted a decline of around 75% in its net profit for the first half of the year. Total revenue was reported down by 19% for the first half.

Orica said that the disappointing first half result was mainly attributable to the poor weather conditions, soft conditions in US coal markets, lower average caustic prices, and the high Australian dollar.

Orica said that it has reported net profit of $A55.1 million in the first six months ended March 31, decreasing by 75% while it was reported of $A220.4 million in the same period last year.

Total revenue in the first half was reported of $A3.226 billion, decreasing by 19% comparing to the same period last year. Orica said that the net profit excluding individually material items was reported of $A293.2 million, increasing by 11% compared to the previous corresponding period.

Orica also said today that it intended to proceed with the demerger of its Dulux Group business, which includes brands such as Dulux paints and Yates garden products, through a scheme of arrangement to create a standalone company listed on the Australian Securities Exchange.

According to the proposed demerger plan, a separate consumer products division would be created with an enterprise value of $A1.25 billion. Orica said that the new company will begin trading on the Australian stock exchange in July, subject to shareholder and court approval.