MELBOURNE, May 10 (Reuters) - Fertiliser and explosives maker Incitec Pivot Ltd IPL.AX reported a 6.4 percent fall in half-year profit before one-off items on Tuesday, hit by sliding fertiliser prices and weaker mine explosives demand and warned of a tough second half.
"The markets in which IPL operates are expected to continue to be challenging in the second half of the financial year. This includes the potential for further declines in coal volumes in the U.S. and below trend fertiliser prices," Incitec said in its results statement.
The world no.2 maker of mine explosives said net profit before one-offs for the six months to March fell to A$137.1 million ($100.2 million) from A$146.4 million a year earlier. That was better than a forecast of A$109 million from Macquarie.
Its bottom line was dented by a A$105.6 million writedown on its Gibson Island plant, reflecting a slide in fertiliser prices and rising gas input costs on Australia's east coast. That took its net profit down to A$31.5 million.
Incitec cut its interim dividend by 7 percent to 4.1 cents a share. Its bigger rival Orica rocked the market on Monday by slashing its explosives volume outlook for 2016 and cutting its dividend in half. ($1 = 1.3678 Australian dollars)