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

Ferro sells another piece of its plastics business

December 19, 2014 3:33 pm ET

Ferro Corp. has sold its North American polymer additives business to a private equity firm for $154 million in cash.    More

Image

Alex Brands buys iconic Shrinky Dinks toys

December 19, 2014 3:15 pm ET

First Slinky, now Shrinky Dinks. What will toy and games investment firm Alex Brands buy next?    More

Image

Thailand's SCG Chemicals buying Norwegian chemical firm Norner

December 19, 2014 9:11 am ET

Thailand's SCG Chemicals Co. Ltd. has announced it has acquired 51 percent of the shares in the independent petrochemical company Norner Holding AS...    More

Image

BASF to sell its share in Singapore JV

December 19, 2014 8:37 am ET

BASF SE has announced that it has reached an agreement for it to sell its share in the 50-50 joint venture ELLBA Eastern, at Jurong Island, Singapore ...    More

Image

Amcor buys Chinese flexible packaging plant

December 18, 2014 1:47 pm ET

Australian-based global packaging company Amcor Ltd. is buying a Chinese flexible packaging business for 211 million RMB (US$31.4 million).    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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

Upcoming Plastics News Events

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

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

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events