Acquisitions drive Amcor results

By Kate Tilley
Correspondent

Published: September 4, 2012 6:00 am ET

Related to this story

Topics Packaging, Mergers & Acquisitions, 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

Accella buys IPS Polymer Systems

March 3, 2015 5:26 pm ET

Accella Performance Materials Inc. is acquiring IPS Polymer Systems Inc. to expand the firm's growing polyurethane operation.    More

Image

Clear Lam settles Doritos lawsuit

March 3, 2015 4:06 pm ET

Clear Lam Packaging Inc. has settled a months-old lawsuit against Frito-Lay Inc. alleging “breach of contract, false advertising, and...    More

Image

Coveris sees 'common culture' form after mergers, acquisitions

March 3, 2015 11:37 am ET

Coveris Holdings Corp. is a mega-rollup in packaging, a major international player, said Robert Larson, president of Coveris' Food and Consumer North ...    More

Image

Study: LLDPE to grow steadily

March 3, 2015 11:23 am ET

Research group Ceresana says linear low density polyethylene (LLDPE) is expected to grow steadily through 2021.    More

Image

Bayer expands with acquisition of Germany's Thermoplast Composite

March 3, 2015 10:59 am ET

Bayer AG's Bayer MaterialScience LLC has bought composite materials specialist Thermoplast Composite GmbH based near Nuremberg, Germany.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events