Net profit after tax of $99.6m, including individually material items (IMIs), was down 41pc, the company reported to the Australian Stock Exchange this morning.

IMIs included the $20.5m after tax cost of implementing the Velocity business efficiency program and a $34.6m after tax mark-to-market on phosphate rock.

But IPL reported that earnings before interest and tax was $272.2m, a 9pc increase on the previous corresponding period of $250m.

However, the company says its 2009 interim dividend will be 2.1 cents per share fully franked.

"In line with prudent financial management, the dividend pay-out ratio is being reduced from the range of 55-65pc to 20-40pc of NPAT," acting chief executive James Fazzino said.

But he maintained the bottom line was a "solid result in a period heavily impacted by the global financial crisis".

During the period demand for IPL products was down in all sectors, some by more than 50pc.

"The result demonstrates the benefit of bringing together two complementary businesses – fertilisers and explosives – and was essentially driven by the focus of our people on managing 'the controllables' such as safety, customer relationships and efficiencies," Mr Fazzino said.

"The mix of earnings in the period was 53pc fertilisers and 47pc explosives, demonstrating the value of the Dyno Nobel acquisition."

According to IPL, the Velocity program in Dyno Nobel produced cost savings in the half year of $US36.5m, representing 54pc of the full year target of $US67m.

Mr Fazzino said IPL had addressed the fall in demand for single superphosphate (SSP) by bringing forward the previously-announced closure of SSP manufacturing at the Cockle Creek facility and ending SSP manufacturing at Geelong from 30 June 2009.

The closure at Geelong means 29 positions in manufacturing will become redundant from Geelong’s current total workforce of approximately 80.

In looking to the next six months, Mr Fazzino said that difficult trading conditions in all sectors of the business were expected to persist.