Orica is currently experiencing pressures on sales and margins from downturns in the coal and resources markets

David Walker

Clime Asset Management

Orica is currently experiencing pressures on sales and margins from downturns in the coal and resources markets. Its key segment, mining services, generates over 90% of company revenues. The other segment, chemicals, has struggled and the company has resolved to sell or demerge it following a strategic review of operations. Despite challenges in the near term, Orica has a positive long-term outlook underpinned by global growth in energy and resources consumption. It should benefit from its operational improvements when key resources markets recover. Orica is currently trading above our valuation of $18.06 for 2013-14. Read more: (VIEW LINK)


1 topic

David Walker
Senior Equities Analyst
Clime Asset Management

David is responsible for equities commentary and editorial content on StocksInValue. He has over 14 years' experience in equities research, funds management, general investment advice and online publishing.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.