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

NY packaging company aims for zero waste

September 16, 2014 1:36 pm ET

Plastic folding carton maker Diamond Packaging is no longer sending any manufacturing waste to landfills.    More

Image

American Renolit sees steady gains in the film market

September 16, 2014 11:51 am ET

American Renolit Corp. has changed its product mix, changed its customer base and managed to grow in a market that was initially skeptical about the...    More

Image

Flexibility for complexity key for Brampton

September 16, 2014 11:26 am ET

Blown film machinery maker Brampton Engineering Inc. is well positioned to meet growing demand for complex film structures, highly customized...    More

Image

Primex finds success among diverse product offerings

September 15, 2014 3:09 pm ET

What was once a run-down stretch of road in Richmond, Ind., has given way to building after building of extrusion machinery at Primex Plastics Corp....    More

Image

Primex names new tech center after John Farber, a steady supporter

September 15, 2014 3:00 pm ET

RICHMOND, IND. — John J. Farber was there when Primex Plastics Corp. was founded in 1965. And he has been a steady source of support...    More

Market Reports

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

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

Upcoming Plastics News Events

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

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

More Events