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

Optical disc molder OEM getting into micromolding with acquisition of CDA

August 29, 2014 11:24 am ET

Optical disc replicator and molder Optical Experts Manufacturing Inc. of Charlotte, N.C., has expanded its core business and entered new high...    More

Image

Tighter resin prices leading to price hike for PE film

August 29, 2014 11:13 am ET

One of North America's largest film makers is pushing through a polyethylene price increase due, in part, to the tight resin market.    More

Polish injection molder Teknorubber up for sale

August 29, 2014 9:14 am ET

Polish plastic parts maker Teknorubber has been put up for sale following its insolvency filing in March 2014. The company is to be auctioned through ...    More

Image

Obituary: Frank Nissel, Welex Inc. co-founder

August 28, 2014 1:01 pm ET

Friends, family and business acquaintances will remember Nissel as an urbane, outgoing machinery executive, an expert on extrusion, a globalist who...    More

Image

Pregis, Sealed Air settle film-foam patent dispute out of court

August 28, 2014 1:01 pm ET

A couple of packaging companies are settling their patent fight over film-foam underlayment.    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

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

January 14, 2015 - January 14, 2015Plastics in Automotive

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

More Events