Mining explosives maker Orica has flagged a cautious outlook for the 2017 fiscal year despite swinging to a full year profit on the back of sharp spending cuts and improving commodities prices.

The company posted a profit of $343 million for the year to September 30, a turnaround from a $1.27 billion loss a year earlier that had followed a large asset writedown. Underlying earnings were lower at $908 million, from $978 million a year earlier. The result is also a sharp…