Global packaging manufacturer Amcor posted on 20 August 2004 a net profit for the 12 months to 30 June 2004 of AUD 345.7 million, down 4.3% year-on-year. The company said it was targeting 20% growth i…
Global packaging manufacturer Amcor posted on 20 August 2004 a net profit for the 12 months to 30 June 2004 of AUD 345.7 million, down 4.3% year-on-year. The company said it was targeting 20% growth in earnings over the next two years After spending AUD 3 billion on acquisitions over the last three years, Amcor said that for the next two years it will focus on optimising returns from its existing assets. All divisions of Amcor were in line with expectations, with the exception of United States-based Sunclipse, which underperformed, according to UBS analyst Matthew Reynolds He said the 20% earnings growth and on-market purchase of stock for the dividend reinvestment programs was very positive, while the company“s decision to avoid large acquisitions for the next two years “is likely to free up cashflow for increased dividend payments”. “Operationally performance was in line with expectations with no major surprises from the divisional performances,” Mr Reynolds said. “The lack of further negative surprises here is a positive.” The company“s Australasia operations had another good year with profit before interest, tax and amortisation (PBITA) up 11.9% to AUD 316.5 million and sales up 3% to AUD 2.538 billion, boosted by solid growth in glass and restructuring initiatives in fiber packaging, folding cartons and food. Earnings growth in Europe and Latin America was offset by North America. Credit Suisse First Boston analyst Rohan Gallagher said some modest upgrades might be required, in line with Amcor“s 20% earnings growth target over two years.