What Orica said at its presentation in May

TODAY'S job cuts at Orica's Yarwun plant were flagged in May as the company announced its half-year results, and in November when it announced 700 jobs would be cut.

The company has announced that about 40 jobs will be cut from the Gladstone plant as capacity is reduced in the face of dwindling demand.

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Orica reported a net profit after tax of $211milllion for the six months ending March 31, at a presentation on May 12.

The company said the result was 3% lower than the prior corresponding period,in the face of challenging external conditions.

Interim CEO Alberto Calderon said at the time market conditions were "unquestionably difficult", but Orica was continuing to take action to mitigate the impact of market headwinds to build a foundation for earnings resilience through the cycle. 

"While the mining price boom has ended, Orica's operations are more closely correlated to production volumes, which have remained steady," Mr Calderon said.

"The diversity of Orica's portfolio and customer offer continues to underpin performance by providing broad exposure across commodities, customers and geographies.

"The initial financial returns from Orica's transformation program are also now evident on the bottom line, with $79m of benefits achieved in the first half, offset by one-off costs of $64m.

"Maintaining our focus on delivering the benefits of transformation to the bottom line is an important priority, as well as finding new opportunities for improvement."

Mr Calderon said Orica was continuing to closely monitor the ammonium nitrate supply/demand balance and was evaluating a number of available options to optimise supply.