Acquisitions drive Amcor results

By Kate Tilley
Correspondent

Published: September 4, 2012 6:00 am ET

Related to this story

Topics Mergers & Acquisitions, Packaging, Film & Sheet

MELBOURNE, AUSTRALIA (Sept. 4, 12:40 p.m. ET) — Global packaging supplier Melbourne-based Amcor Ltd. expects another year of higher earnings thanks to key acquisitions and growth in its flexible packaging division in China.

Amcor manufactures PET containers for beverages; flexible packaging for the food and healthcare markets; tobacco packaging; and corrugated boxes.

In a report to investors on its 2012 financial year results, Amcor said its flexibles business is set to grow in China, after it took full ownership of factories in Beijing and Chengdu. Amcor previously held 75 percent and 40 percent interests in those plants respectively.

“These acquisitions provide the business with additional leverage to growth opportunities being pursued in the north and west of China,” the report said.

Amcor’s Chinese flexibles business has seven plants. Sales in China for the year to ended June 30 increased 13 percent.

Across all locations, Amcor Flexibles division’s profit before interest and tax (PBIT) increased 10.1 percent to A$683.3 million (US$713.6 million) and sales rose 3.7 percent to A$6.1 billion (US$6.4 billion).

Across all divisions, Amcor posted record results. Profit after tax and before significant items increased 11.3 percent to A$634.9 million (US$663 million) and returns increased from 14.1 percent to 15.9 percent. The company completed a A$150 million (US$157 million) share buy-back.

Amcor Managing Director and CEO Ken MacKenzie said: “To achieve an 11.3 percent increase in underlying earnings was an outstanding effort, given subdued economic conditions and a A$35 million (US$37 million) adverse impact on reported earnings due to the appreciation of the Australian dollar.”

Amcor Rigid Plastics division’s PBIT increased 8.8 percent to A$264.1 million (US$275.8 million). Successful integration of the Ball Plastic Packaging Americas acquisition drove the growth.

MacKenzie said two “transformational acquisitions” during the global financial crisis - Alcan Packaging and Ball – were key earnings growth components for the financial year. He said both acquisitions’ integration programs are ahead of schedule in timing and synergy benefits.

In 2010, Amcor bought parts of Rio Tinto Group’s Paris-based Alcan Packaging business for about US$2 billion and acquired Ball Americas’ assets for US$280 million. Ball was a unit of Broomfield, Colo.-based Ball Corp.

However, the Australian economy’s uncertain outlook and the high Australian dollar have impacted on Amcor’s Australasia & Packaging Distribution business’s earnings.

Amcor said the division’s PBIT decreased 4.5 percent to A$152.5 million (US$159.3 million). Sales increased only marginally by 1.3 percent to A$2.9 billion (US$3 billion). But MacKenzie said it was a “solid performance.”


Comments

Acquisitions drive Amcor results

By Kate Tilley
Correspondent

Published: September 4, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Newell Rubbermaid to acquire Contigo brand

July 21, 2014 5:00 pm ET

Consumer products company Newell Rubbermaid Inc. has signed an agreement to acquire Ignite Holdings LLC, owner of the Contigo and Avex brands of...    More

Image

Windmöller & Hölscher looking to continued growth in China

July 21, 2014 3:40 pm ET

With 2013 global sales of 600 million euros, China has grown into an important export market for Windmöller & Hölscher KG, second only to the United...    More

Image

Grocery store chain says bag recycling up by 10 percent

July 21, 2014 2:54 pm ET

Kroger Co., with more than 2,600 stores in 34 states and sales nearing $100 billion, saw plastic bag recycling increase by 10 percent last year.    More

Image

New startup uses film for a 'virtual venetian blind' in smart windows

July 21, 2014 12:50 pm ET

Flexible ITO Solutions, which goes by FITOS, has an informal development agreement with a smart window manufacturer that could use the technology to...    More

Image

Huhtamäki to evaluate its films business

July 21, 2014 9:52 am ET

Finland-based plastics packaging group, Huhtamäki Oyj, has announced that it is evaluating its options regarding its films business, due to its growin...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events