Orica's Earnings to Take a Hit on North American Volumes and Supply Snags, Says Jefferies

MT Newswires Live

Mar 31

Orica (ASX:ORI) is expected to post 4% to 6% lower earnings per share in fiscal 2026-2027 due to reduced North America and Indonesia volume growth and increased supply costs, Jefferies said in a note on Monday.

The investment firm noted that Orica's termination of 500,000 tons per annum ammonium nitrate (AN) supply agreement with CF Industries, following a $169.5 million litigation settlement, has created a structural shortfall in the North American market, where sourcing AN will be challenging.

The volume gap will need to be filled through imports, spot purchases or premium-priced APAC shipments, which is expected to impact core profit by AU$30 million from fiscal 2027.

Although, Orica's acquisition of Nelson Brothers is seen to somewhat offset the CF-related supply disruptions, with contributions of AU$35 million to core profit annually.

Jefferies kept its buy rating but cut the price target to AU$24.04 from AU$25.73.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.0a0bd8dc.png","ogUrl":"https://www.itiger.com/news/2623864327"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2623864327\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2623864327?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-03-31 06:48","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2623864327","market":"fut","top_or_hot":-1,"title":"Orica's Earnings to Take a Hit on North American Volumes and Supply Snags, Says Jefferies","media":"MT Newswires Live","content":"<html><body><p> Orica (ASX:ORI) is expected to post 4% to 6% lower earnings per share in fiscal 2026-2027 due to reduced North America and Indonesia volume growth and increased supply costs, Jefferies said in a note on Monday.</p><p>The investment firm noted that Orica's termination of 500,000 tons per annum ammonium nitrate (AN) supply agreement with CF Industries, following a $169.5 million litigation settlement, has created a structural shortfall in the <a href=\"https://laohu8.com/S/FNCSF\">North American</a> market, where sourcing AN will be challenging.</p><p>The volume gap will need to be filled through imports, spot purchases or premium-priced APAC shipments, which is expected to impact core profit by AU$30 million from fiscal 2027.</p><p>Although, Orica's acquisition of Nelson Brothers is seen to somewhat offset the CF-related supply disruptions, with contributions of AU$35 million to core profit annually.</p><p>Jefferies kept its buy rating but cut the price target to AU$24.04 from AU$25.73.</p></body></html>","source":"mtnewswires_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Orica's Earnings to Take a Hit on North American Volumes and Supply Snags, Says Jefferies</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOrica's Earnings to Take a Hit on North American Volumes and Supply Snags, Says Jefferies\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1092851196\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/3002d84abbd5ace3c99397c7f95b8d4e);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">MT Newswires Live </p>\n<p class=\"h-time\">2026-03-31 06:48</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><body><p> Orica (ASX:ORI) is expected to post 4% to 6% lower earnings per share in fiscal 2026-2027 due to reduced North America and Indonesia volume growth and increased supply costs, Jefferies said in a note on Monday.</p><p>The investment firm noted that Orica's termination of 500,000 tons per annum ammonium nitrate (AN) supply agreement with CF Industries, following a $169.5 million litigation settlement, has created a structural shortfall in the <a href=\"https://laohu8.com/S/FNCSF\">North American</a> market, where sourcing AN will be challenging.</p><p>The volume gap will need to be filled through imports, spot purchases or premium-priced APAC shipments, which is expected to impact core profit by AU$30 million from fiscal 2027.</p><p>Although, Orica's acquisition of Nelson Brothers is seen to somewhat offset the CF-related supply disruptions, with contributions of AU$35 million to core profit annually.</p><p>Jefferies kept its buy rating but cut the price target to AU$24.04 from AU$25.73.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"AFG","symbol_name":"美国金融集团有限公司","start_time":0,"source_url":"https://www.mtnewswires.com/","article_id":"2623864327","we_media_id":"1092851196","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2623864327","pubTimestamp":1774910891,"columns":[],"sourceInfo":{"source_id":"mtnewswires_news","name":"MT Newswires"},"weMediaInfo":{"media_name":"MT Newswires Live","introduction":"The most recognized names in North America, Europe and Asia rely on MT Newswires to power their applications. Better news, better service, better price.","home_visible":1,"id":"1092851196","head_image":"https://community-static.tradeup.com/news/3002d84abbd5ace3c99397c7f95b8d4e"},"summary":"Orica  is expected to post 4% to 6% lower earnings per share in fiscal 2026-2027 due to reduced North America and Indonesia volume growth and increased supply costs, Jefferies said in a note on Monday.The investment firm noted that Orica's termination of 500,000 tons per annum ammonium nitrate  supply agreement with CF Industries, following a $169.5 million litigation settlement, has created a structural shortfall in the North American market, where sourcing AN will be challenging.The volume gap will need to be filled through imports, spot purchases or premium-priced APAC shipments, which is expected to impact core profit by AU$30 million from fiscal 2027.Although, Orica's acquisition of Nelson Brothers is seen to somewhat offset the CF-related supply disruptions, with contributions of AU$35 million to core profit annually.Jefferies kept its buy rating but cut the price target to AU$24.04 from AU$25.73.","collect":0,"end_time":0,"defaultTopTitle":"","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"AFG":"美国金融集团有限公司","ORI.AU":"ORICA LTD"},"translate_title":"杰富瑞表示，Orica的盈利将因北美销量和供应障碍而受到打击","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AFG":1.5,"ORI.AU":1.5},"content_text":"Orica (ASX:ORI) is expected to post 4% to 6% lower earnings per share in fiscal 2026-2027 due to reduced North America and Indonesia volume growth and increased supply costs, Jefferies said in a note on Monday.The investment firm noted that Orica's termination of 500,000 tons per annum ammonium nitrate (AN) supply agreement with CF Industries, following a $169.5 million litigation settlement, has created a structural shortfall in the North American market, where sourcing AN will be challenging.The volume gap will need to be filled through imports, spot purchases or premium-priced APAC shipments, which is expected to impact core profit by AU$30 million from fiscal 2027.Although, Orica's acquisition of Nelson Brothers is seen to somewhat offset the CF-related supply disruptions, with contributions of AU$35 million to core profit annually.Jefferies kept its buy rating but cut the price target to AU$24.04 from AU$25.73.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":true,"editions":null,"column":"","sentiment":"-1","news_tag":"dataReport","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}