INCITEC Pivot shareholders heard changes to the company's fertiliser division should help to ease the effects of market volatility.
In his address to shareholders at the Incitec annual general meeting in Melbourne managing director James Fazzino said the merger of the domestic fertiliser distribution business with the international fertiliser trading arm to "allow a line of sight" from fertiliser production or buying to the customer or farmgate.
He said the move would allow more confidence around supply and price and would provide a benefit to Incitec by "muting inherent volatility" in the global fertiliser industry.
Earlier chairman Paul Brasher said 2012 had been a tough and the end result had been disappointing.
Mr Brasher said the exchange rates and commodity prices had contributed to a "tough environment."
Last month Incitec announced a net profit after tax of $510.7 million for the year to Sept 30 2012, down on the previous year's profit of $463.2 million.
Earnings before interest and tax, excluding individually material items decreased 22 per cent to $599.1 million.
Earnings Per Share excluding individual material items was down 24 per cent to 24.8 cents per share.
The fertiliser part of Incitec represents 40 per cent of the business earnings and had a 40 per cent decline in earnings before interest and tax.
Shareholders approved a Performance Rights Plan for Mr Fazzino, which means he can acquire ordinary shares for no cost at a later date.
Mr Fazzino will be issued with 728,497 performance rights.
Shareholders also re-elected Paul Brasher and Graham Smorgon.
Each resolution passed with more than 90 per cent voting in favour.
Mr Rasher also faced questions from the floor about Incitec's activities in the Western Sahara.
