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

Almost half of mid-market firms say they are looking to buy competitors

March 2, 2015 3:52 pm ET

There are steps that plastics business owners can take to keep the mergers and acquisitions parade rolling into 2015.    More

Image

P&G adding label to help guide consumers in recycling

March 2, 2015 3:29 pm ET

Procter & Gamble Co. will help prompt consumers to recycle rigid packaging by joining the Sustainable Packaging Coalition's How2Recycle Label program.    More

Image

Western Case grows with investments in infrastructure and equipment

February 27, 2015 5:56 pm ET

RIVERSIDE, CALIF. — Blow molder Western Case Inc. has invested significantly in infrastructure and equipment while relocating and raising the...    More

Image

German molder picks North Carolina for US manufacturing plant

February 26, 2015 4:21 pm ET

UPDATED — German medical goods company Raumedic AG has chosen Mills River, N.C., for its first U.S. manufacturing site and U.S. headquarters.    More

Image

Plastic Omnium makes China investment push

February 26, 2015 4:35 pm ET

Three of the six new plants that automotive molder Plastic Omnium SA plans this year will be in China, part of a broader push it’s making in Asi...    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