Mr Fazzino, 43, the company’s chief financial officer since 2003, was yesterday appointed managing director and chief executive of Incitec Pivot, a position he had filled on an acting basis since the resignation of Julian Segal in May.

Mr Fazzino told BusinessDay that the decline in fertiliser sales and prices seemed to be over.

"We have seen more firmness in fertiliser prices," he said.

"To put that in context, DAP (diammonium phosphate) last year was $US1200 a tonne. It bottomed at $US260 and it's about $US290 today.

"That makes sense because fertiliser use is discretionary.

"You can cut back today, but what you don't use today you must use in future years."

Mr Fazzino said Incitec's strategy, with four immediate priorities, was mapped out.

First was zero harm.

"Basically, you ensure people don’t injure themselves," he said.

"That's always the first priority when you're dealing with heavy chemicals and explosives."

Second, the company had to deliver on the Dyno acquisition.

"That's all about the Velocity program — the efficiency program. We're on track to deliver $204 million of benefits by 2011."

Third, Mr Fazzino said, Incitec had to increase the cost position and reliability of its plants, especially in North America.

"We sell commodities and must be at the bottom of the cost curve," he said.

The fourth priority will be to focus on the Moranbah project.

Incitec has slowed building of the $935 million ammonium nitrate plant at Moranbah in Central Queensland because of weaker demand.

Mr Fazzino said the split in company earnings between explosives and fertilisers would remain about 50:50.

"We end up with a far better stream of cash flows with an explosives business in the mix," he said.

In May, Incitec Pivot downgraded its full-year profit guidance and reported a six-month profit of $99.6 million, down 41 per cent from last year, due to weaker demand for explosives and fertiliser.

Incitec's shares closed 8¢, or 2.9 per cent, lower at $2.68.