Ken MacKenzie, CEO of Amcor says synergies from the Alcan Packaging acquisition coupled with strong growth in two of its other divisions, has put Amcor in a strong position for the next 18 months.

Commenting on the integration of Alcan Packaging, MacKenzie says, “Cost synergy targets have increased by approximately 25 per cent compared to expectations outlined at the time of acquisition. The exit run rate of synergies at June 30 was $200m, which is an outstanding outcome after just 18 months of ownership.

“The underlying operating performance of the business has also improved substantially and we are now 12 months ahead of schedule in terms of improving margins and returns.”

Amcor reported a positive cash flow of $440m despite taking a $35m loss in profit due to raw material costs. The packaging giant also declared an annual dividend of 35 cents per share, up 19 per cent from 2010.

While the Australasian and Packaging Distribution business experienced difficult trading conditions it finished with earnings in line with the prior year. Moreover, the company’s Rigid Plastic and Flexibles businesses were up 29 per cent and 78 per cent respectively.

Mackenzie continues, “The significantly improved earnings and strong cash flow, positions the Company to accelerate growth in attractive market segments.

“Amcor, as a global leader in our chosen market segments, is well positioned to deliver sustained growth and improving returns to shareholders. In the 2011 year, earnings increased and we expect to achieve higher earnings and returns in the current year.”

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