Explosives firm Orica has seen a 33 per cent slump in half-year profits.

In what analysts say is a sign of the downturn in the global mining industry, Orica has posted net profit for the six months to the end of March of just $149 million.

This is down from $222.1 million during the same period a year earlier.

Orica managing director and chief executive Alberto Calderon said it was a rough run.

“Conditions deteriorated markedly throughout January and February 2016, with substantial commodity price volatility impacting mining industry volumes and flowing through to Orica's volumes for those months,” he said in a statement to the ASX.

The company was forced to pay $41 million in a settlement to the Australian Tax Office.

For the rest of the year, Orica said it expects to take a $85 million hit from price resets and contract renewals.

“Market conditions deteriorated more than we anticipated during the half, marked by increased volatility,” Mr Calderon said.

“It is expected that the market will remain challenged for the foreseeable future.”

Shares in Orica slumped to a two-and-a-half month low on the day of the announcement.

Orica's board declared an interim dividend of 20.5 cents per share.