Overview of Orica's recent announcement

Orica (ASX:ORI) has announced changes to its segment reporting ahead of the 2024 financial year full year results release. The company has restructured its reportable segments to include Blasting Solutions, Digital Solutions, and Specialty Mining Chemicals. Additionally, Orica provided an update on its second half performance, indicating that the underlying EBIT for the second half of 2024 is expected to be higher than the prior year and slightly better than forecasted.

Executive commentary on segment reporting and performance update

Orica's recent announcement highlights the company's strategic acquisitions in the Specialty Mining Chemicals and Digital Solutions segments, aligning with its goal to expand beyond blasting while continuing to grow its core blasting business. The restructuring of reportable segments aims to provide a clearer view of Orica's financial performance and operations. Regarding the second half performance update, Orica anticipates positive results across its Blasting Solutions and Digital Solutions segments, with strong demand for its products and services. Despite challenges in the Specialty Mining Chemicals segment, the company remains optimistic about achieving its investment case. Orica also outlined significant items and capital expenditure expectations for the period, emphasizing its commitment to transparency and accountability.

Summary of Orica's announcement and outlook

Orica's announcement of changes to its segment reporting reflects the company's strategic acquisitions and commitment to transparent financial reporting. The update on second half performance indicates positive momentum in the Blasting Solutions and Digital Solutions segments, while addressing challenges in the Specialty Mining Chemicals segment. The company's outlook remains optimistic, with a focus on achieving its investment case and managing capital expenditure effectively. Orica's ambition to achieve net zero emissions by 2050 underscores its commitment to sustainability and aligning with global environmental goals. Investors can anticipate further details when the 2024 financial results are released on Thursday 14 November 2024.