| Australian packaging giant Amcor has enjoyed “an outstanding year” in its PET Packaging business, the group reported today despite a fall in profits.
Figures for the twelve months to the end of June revealed a A$369.1m profit after tax, before significant items.These items - relating to restructuring – resulted in a loss of A$110.3m.
Once the higher Australian currency was taken into account, this impacted profit after tax by a negative A$32m. But despite this the company remained upbeat.
Amcor said its policy of focusing on higher technology, hot fill custom containers has paid dividends. Nearly half of the group’s PET business falls into this category.
The result, said ceo Ken MacKenzie, was that margins of 9.2% two years ago have risen to the 12% level in the year 2007/8.
Looking ahead, he added: “The outlook for PET packaging is for continued earnings improvement in the 2008/9 year.”
Amcor remains a significant player in PET packaging although it sold its European business to Spain’s La Seda last July (PRW.com 2 July 2007).
Moves into higher value products also contributed to the improved results in Amcor’s Food Flexibles and Healthcare Flexibles businesses, with both passing on higher costs successfully. Restructuring of the European flexibles business has also contributed to the performance.
Overall, Amcor reported a 9.4% improvement on profit before interest and tax for continuing businesses.
The figure represented “a solid result,” given the negative impact on earnings of the strong Australian dollar, said MacKenzie.
He added: “Approximately 80% of Amcor’s earnings are generated offshore, mostly in North America and Europe and the translation of these earnings into Australian dollars, for reporting purposes, had a A$32m negative impact on profit after tax.” |
