Amcor’s Flexibles business to grow in 2012

Amcor’s Flexibles business achieved an ‘outstanding result’ in 2011 and will see higher earnings in 2012, the Australian company’s annual general meeting has been told.
 
Chairman Chris Roberts described record profit, increased return on sales and a higher return on average funds for the 2011 financial year as ‘outstanding’. He added that ongoing cost synergies derived from the 2009 acquisition of Alcan Packaging contributed €91 (AUS$122) million to the record €450 (AUS$606) million profit before interest and tax, with improved underlying performance adding €27 (AUS$36) million.
 
Roberts said: ‘The magnitude of these benefits exceeded expectations set out at the time of the Alcan acquisition.’
 
Managing director and CEO Ken MacKenzie said the core markets for Amcor’s Flexibles business, food, healthcare and tobacco packaging, are less volatile than other sectors and volumes have remained steady into the first quarter of the 2012 fiscal year.
 
MacKenzie said: ‘Raw material input costs in the first quarter were higher than the same period in 2011 and also higher than the fourth quarter last financial year. These increased costs continue to be actively recovered in the market place. Earnings for the flexible segment are expected to be higher with the key drivers being additional cost synergy benefits and ongoing operating improvements.’
 
Amcor also announced Ern Pope has retired as a director after six years with the company, adding that it has offered Jenny Seabrook a position on its board. Seabrook is a non-executive director of Iluka Resources, IRESS Market Technology and the Bank of Western Australia, with experience in mergers, acquisitions and equity capital markets.