Orica FY2015 results: a 'good enough' year of performance?

Orica released its FY2015 results this morning: while revenue from continuing operations of $5.7 billion is down slightly on the pcp (FY14: $5.78 billion), underlying NPAT on continuing operations of $417.2 million is down 26% on FY14. Statutory NLAT of -$1.267 billion includes $1.169 billion in assets impairments. STI awards were paid at around 32% of maximum to the continuing executives. Clearly this is not for EBIT and NPAT performance, but for safety performance, cash conversion and gross margin performance, plus meeting those transformation targets on cost and headcount reduction. Andrew Larke, former Executive Global Head of Chemicals, Strategy and Planning - and now CEO of IXOM following the sale of the chemicals business by Orica - received $3.3 million as a cash bonus, paid in three tranches: board approves sale, sale successfully completed and 6 months after sale completed. Ian Smith, former MD/CEO (to 23 March 2015) received $2.5 million in termination payments but no STI. Former Finance director Craig Elkington received STI of $678,500 to reflect his role in chemicals business sale.