Reuters
Amcor on track for strong profit growth this year
Edited by : AL CIRCLE
1 min read
Australian packaging group Amcor stood by its forecast for "substantially" higher earnings this year,expecting cost savings tied to its Alcan and Ball plastics acquisitions to outweigh rising raw materials costs.
"Although economic conditions remain uncertain, the momentum of cost synergies already achieved and ongoing operational improvements in the acquired businesses underpins earnings growth for the next two years," Amcor Chief Executive Ken MacKenzie told the group's annual meeting on Thursday.
Amcor's shares jumped 3.6 percent to a three-month high after its update while the broader market sank, with investors attracted to its defensive businesses in plastic bottles for soft drinks and packaging for food, medicines and cigarettes.
While costs of raw materials like resins, polymers and aluminium foil have continued to increase in the first quarter, MacKenzie said the company has been able to pass on the higher costs fully to its customers with a three-six month lag.
"Although economic conditions remain uncertain, the momentum of cost synergies already achieved and ongoing operational improvements in the acquired businesses underpins earnings growth for the next two years," Amcor Chief Executive Ken MacKenzie told the group's annual meeting on Thursday.
Amcor's shares jumped 3.6 percent to a three-month high after its update while the broader market sank, with investors attracted to its defensive businesses in plastic bottles for soft drinks and packaging for food, medicines and cigarettes.
While costs of raw materials like resins, polymers and aluminium foil have continued to increase in the first quarter, MacKenzie said the company has been able to pass on the higher costs fully to its customers with a three-six month lag.
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