Packaging giant Amcor’s managing director and CEO Ken MacKenzie has reported record results for the year ended 30 June 2012. “The full year result represented a record underlying profit, record returns and a record dividend for the company,” he says. “Profit before significant items increased 11.3% to $634.9 million, returns increased from 14.1% to 15.9% and the dividend increased 5.7% to 37 cents per share. During the year the company also completed a $150 million share buy-back.
“To achieve an 11.3% increase in underlying earnings was an outstanding effort by our co-workers, given subdued economic conditions and a $35 million adverse impact on reported earnings due to the appreciation of the Australian dollar. Operating cash flow for the year was $643.7 million. This was an outstanding result and underpins our ability to continue to grow shareholder value.”
He concludes: “This strong performance is particularly pleasing given that economic conditions are likely to remain subdued in the developed markets.“
Amcor undertook two transformational acquisitions during the global financial crisis, purchasing Alcan Packaging and Ball Plastic Packaging. The integration programmes for both are ahead of schedule in terms of timing and total synergy benefits. “These improvements have been a key component of earnings growth for the year,” says MacKenzie.
The Flexibles business had an excellent year, with earnings up 16.9% and returns of 23.9%. Sales were 2.3% higher with generally stable volumes in the developed countries and continued growth in emerging markets, particularly Asia. The Rigid Plastics business also had a strong year, with earnings 13.4% higher and returns of 15.5%, driven predominately by the benefits of the successful integration of Ball Plastic Packaging.
In summary, MacKenzie comments: “In the current year it is expected that volumes will again be resilient and that the benefits from recent acquisitions, growth in emerging markets, cost reduction initiatives and continued strong cash focus will combine to deliver another year of higher earnings. With market leadership in our chosen market segments and an extensive global manufacturing footprint, the company is well positioned to further improve our customer value proposition and deliver improved earnings and returns for shareholders.”
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