April 26, 2018 / 11:21 PM / in a year

UPDATE 1-Australia's Incitec Pivot to take $178 mln charge in H1

(Adds details on impairment charge, background)

April 27 (Reuters) - Australian explosives maker Incitec Pivot Ltd on Friday said it expects to book a A$236 million ($178.4 million) non-cash impairment charge on its Asia-Pacific explosives making unit Dyno Nobel in the first half of 2018.

Incitec said it expects the charge to reduce the carrying value of Dyno Nobel’s goodwill to A$908.5 million as at 31 March 2018 from A$1.14 billion as at 30 September 2017.

The company, which flagged a A$5 million hit to fiscal 2018 net profit in January due to the loss of an explosives contract, said the charge also reflected ammonium nitrate supply demand imbalance in Australia and long-term gas costs.

Incitec, however, said it remains positive about the unit’s medium to long term growth outlook, and intends to give further updates in its half-yearly results scheduled for May 9.

The company, also said on Friday it would recognize a one-off benefit from U.S. tax reform of A$96.5 million.

United States President Donald Trump in December signed a $1.5 trillion tax overhaul which cut the federal corporate tax rate to 21 percent from 35 percent.

$1 = 1.3233 Australian dollars Reporting by Susan Mathew in Bengaluru; editing by Richard Pullin

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