Despite a negative impact of $50m due to the appreciation of the Australian dollar, earnings were up 51.3 on the prior first half year to $6.175bn and a profit after significant items of $226m, up 138 per cent on the year before.

In announcing the result, Ken MacKenzie, managing director of Amcor said the half year result was particularly pleasing. He continued that the integration of the recent acquisition of Alcan Packaging is proceeding well and synergy benefits for the half were consistent with expectations.

He says, “We expect the positive impact of realised cost synergies in the full year result to be between $100m and $120m.

“We remain confident of achieving $200m to $250m in synergies by the third full year of ownership. These synergies relate to overhead cost reductions, procurement savings and improved operational efficiencies from the Alcan Packaging acquisition.”

The packaging giant has also delivered a dividend of 17 cents per share, up from 12.5 cents the year before.

Amcor’s Australasia and packaging distribution business also reported a strong result for the period with earnings up 21 per cent due to increased volumes in packaging distribution and increased efficiencies in cost management.

MacKenzie adds, “The Australian based businesses have been impacted by the extreme weather across most of Eastern Australia over the past few months. There are a number of crops that have been destroyed and this will adversely affect volumes.

“Across Amcor Australasia it was extremely pleasing that none of our co-workers were injured in the floods or cyclone. Where equipment was damaged our co-workers did an outstanding job getting our plants operational as quickly as possible.”

The company also claims that its outlook for the second half is good with overall earnings expected to be well ahead of the same period last year.

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