Amcor full-year profit falls
Australia-based plastic bottling giant Amcor Ltd. has posted a 14 per cent fall in annual profit, but says it ...
August 28, 2010 by Canadian Plastics
Australia-based plastic bottling giant Amcor Ltd. has posted a 14 per cent fall in annual profit, but says it expects profits to increase in the current year.
Despite a 3.3 per cent increase in sales, the company posted net profit for the year ended June 30 of US$183 million, down from US$211.7 million in the prior year.
According to Amcor, the recent earnings were negatively impacted by after tax expenses of US$226 million, primarily related to restructuring costs and the acquisition of Ball Plastic Packaging Americas and parts of Rio Tinto’s Alcan Packaging unit.
“We remain confident of achieving US$200 million to US$250 million in synergies relating to overhead cost reductions, procurement cost savings and improved operational efficiencies,” said Alcan CEO Ken MacKenzie. “There is no doubt the acquisitions are an exciting opportunity for Amcor and one we believe will create substantial shareholder value.”
On its rigid plastics business, Amcor said an improved performance in Latin America offset lower volumes in North America, although volumes in North America have been seasonally stronger in the fourth quarter and into the start of fiscal year 2011.