Packaging giant Amcor to separate units and focus on plastics

By Kate Tilley
Correspondent

Published: August 21, 2013 12:52 pm ET

Related to this story

Topics Mergers & Acquisitions, Packaging, Blow Molding, Extrusion, Film & Sheet
Companies & Associations Amcor Ltd.

Australian-based packaging giant Amcor Ltd. plans to split in two, retaining its plastics divisions and establishing a new company for its other units.

The multinational packaging company, headquartered in Hawthorn, Australia, says Australasian and Packaging Distribution Ltd. (AAPD) will be a separate listed company by the end of the year. AAPD will retain the fiber, glass and beverage can packaging operations in Australia and New Zealand, and Amcor’s packaging distribution operations in North America and Australia.

The demerger comes on the heels of strong earnings from Amcor’s flexible and rigid plastic packaging businesses.

Amcor said the new AAPD business, with annual sales of A$2 billion (US$1.8 billion), will be well placed for success with large cost savings expected over the next three years.

It said Amcor is well positioned for the next year and will have a “very focused” portfolio after the AAPD demerger. The group will focus on flexible and rigid plastics and tobacco packaging.

Ron Delia, executive vice president of finance, told investors both AAPD and Amcor, post-merger, will be set up for success and strong cash flows, as Amcor reported an 8.6 percent increase in underlying net annual profit to A$689.5 million (US$622 million) for the fiscal year ended June 30, 2013.

Net profit after taxes for the year was A$600.6 million (US$542 million), up 45.6 percent from a year ago.

“The rigid plastics group had a solid year with earnings up 5.2 percent and returns of 16.9 percent. The business secured substantial new volumes in the beverage and diversified products segments that will contribute to future earnings growth,” said Amcor managing director and CEO Ken MacKenzie.

“The flexible packaging segment had a strong year with profit up 11.9 percent and record returns of 24 percent.”


Comments

Packaging giant Amcor to separate units and focus on plastics

By Kate Tilley
Correspondent

Published: August 21, 2013 12:52 pm ET

Post Your Comments


Back to story


More stories

Image

Contigo, Avex buy lets Newell Rubbermaid leapfrog new bottle development

July 22, 2014 4:11 pm ET

Newell Rubbermaid Inc. is ready to accelerate its move into the reusable water bottle business with the purchase of two on-the-go drinkware brands.    More

Image

Beer maker Carlsberg enlists suppliers for 'upcycling' project

July 22, 2014 11:14 am ET

Carlsberg Breweries A/S in Denmark has started an ambitious project with its suppliers to optimize its packaging for the purpose of “upcycling....    More

Image

Global market for plastic containers to top 46 million metric tons by 2021

July 22, 2014 10:56 am ET

German research company Ceresana has released a study saying that it expects the global market for plastic containers to rise to 46.2 million metric...    More

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 S...    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