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Incitec Pivot lifts annual profit

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AAP

2012-11-13

Fertiliser and explosives maker Incitec Pivot has lifted its annual profit by 10 per cent but fluctuating fertiliser prices continue to impact its earnings.

The company's net profit in the 12 months to September 30 of $510.7 million was up from $463.2 million in the previous year.

The profit growth was primarily due to one-off items, which delivered a $106 million benefit in fiscal 2012, and a $67 million cost in fiscal 2011.

Incitec Pivot's net profit excluding one-off items in the year to September of $404.7 million was down 24 per cent from the previous year's $530.1 million.

Chief executive James Fazzino said 60 per cent of the company's earnings came from its explosives business, reflecting a strategic emphasis on that sector.

Earnings from explosives were up eight per cent from the previous year.

Earnings in fertilisers fell by 40 per cent from the previous corresponding period, due to volatile fertiliser prices, Incitec Pivot said.

No specific profit guidance was provided.

Incitec Pivot declared a 75 per cent franked final dividend of 9.1 cents per share, up from 8.2 cents at the same time last year.