Reuters reported that Australia's Orica Limited, the world's top maker of explosives used in mining, still expects profit to grow in 2009 as a fall in input costs and a weaker Australian dollar offset possible lower demand from cutbacks by global miners.

Orica said to its shareholders that the first 3 months of 2009 were on track even as it predicted more production cutbacks by miners as demand for coal and metals slows alongside shrinking global economic growth.

Mr Graeme Liebelt, MD of Orica said that "In the first quarter of our financial year, profit is ahead of last year and broadly in line with plan. We see no reason to change our expectation of continued profit growth in 2009."

Mr Liebelt said that "You would not necessarily see profit growth slowing but I would just caution you about that. We are only forecasting that our profit will be ahead of last year at this point. That is our guidance and there are so many uncertainties around today we do not want to be more specific.”

Miners worldwide have announced production cutbacks and job losses as demand from end users of commodities slumps amid the financial crisis. Still, a weaker Australian dollar and falling input costs could see Orica top last year's growth rate, when underlying profit excluding significant items rose 15%to AUD .3 million.

Orica had seen some cancellation of orders for explosives from coal, zinc, nickel and iron ore miners but said growth in other customers in the first quarter had offset those order losses.

(Sourced from Reuters)