Amcor announces six-month results.MELBOURNE Melbourne, city, Australia Melbourne, city (1991 pop. 2,761,995), capital of Victoria, SE Australia, on Port Phillip Bay at the mouth of the Yarra River. Melbourne, Australia's second largest city, is a rail and air hub and financial and commercial center. , Australia--(BUSINESS WIRE)--March 7, 1996--Amcor Limited (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AMCRY) today announced consolidated results for the six months ended December December: see month. 31, 1995. HIGHLIGHTS Results(a) o Profit before interest & tax up 9% to $374.2 million (up 16% with Spicers accounted for on a consistent basis in the two periods) o Profit after tax up 9% to $213.5 million o Earnings per share up 6% o Interim dividend of 18 cents, 100% franked at 33 cents o Strong Financial position underpins continuing business expansion (a) Results and comparatives are before abnormal items Operations o Businesses achieved mixed results. Amcor AMCOR Atlantic Margin Coring Project Paper Group's results were well ahead of last year but operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of the packaging businesses were below expectations, reflecting a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. and some other key markets o Continuing good performance by major offshore operations, particularly Twinpak, Sunclipse and Rentsch o Acquisition by Containers Packaging of the Golden Circle can manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. in Queensland Queensland, state (1991 pop. 2,477,152), 667,000 sq mi (1,727,200 sq km), NE Australia. Brisbane is the capital; other important cities are Gold Coast, Toowoomba, Townsville, Rockhampton, Cairns, and Ipswich. o Upgrading of the Burnie pulp and paper mill to reduce costs and increase output o Expansion of the Holfelder paper mill in Germany o Construction of a new greenfield Greenfield, town (1990 pop. 18,666), seat of Franklin co., NW Mass., at the confluence of the Deerfield and Green rivers, near their junction with the Connecticut; settled 1686, set off from Deerfield and inc. 1753. corrugating plant in the UK and acquisition of Anle Paper Company, a Chicago-based fibre box distribution business o Continuation of the Share Acquisition Scheme for shareholders in 1996 on the same terms as in 1995 o Expansion of eucalypt plantations PLANTATIONS. Colonies, (q.v.) dependencies. (q.v.) 1 Bl. Com. 107. In England, this word, as it is used in St. 12, II. c. 18, is never applied to, any of the British dominions in Europe, but only to the colonies in the West Indies and America. 1 Marsh. Ins, B. 1, c. 3, Sec. 2, page 64. is proceeding PROFIT AND SALES Consolidated net operating profit excluding abnormal items attributable to shareholders of Amcor was $213.5 million for the six months to December 1995 compared with $196.2 million in 1994, an increase of 9%. Earnings per share rose 6%. There were no abnormal items (compared with an abnormal loss of $2.4 million after tax in 1994). Comparisons with last year are contained in the following table:
July/December July/December %
1995 1994 Increase
$ million $ million
Sales 3,230.0 3,157.1 + 2% Profit before interest & tax(b) 374.2 344.5 + 9% Profit before tax(b) 306.9 296.2 + 4% Profit after tax(b) 213.5 196.2 + 9% Basic Earnings per share(b) 34.7cents 32.8cents + 6% (b) Before abnormal items
Because of Amcor's reduced percentage shareholding in Spicers
Paper Limited, with effect from July 1, 1995 Spicers is no longer
consolidated in the Amcor Limited accounts. If the 1994 figures are
adjusted to also deconsolidate Spicers, the true comparison between
the two periods is as follows:
July/December July/December %
1995 1994 Increase
$ million $ million
Sales 3,230.0 2,747.0 +18% Profit before interest & tax 374.2 323.8 +16% Profit before tax 306.9 281.1 + 9% Profit after tax 213.5 193.8 +10% Basin Earnings per share 34.7cents 32.4cents + 7% INTERIM DIVIDEND
Directors have declared an unchanged interim dividend of 18 cents
per share, 100% franked at 33 cents in the dollar.
The company will mail the interim dividend on April 17 to
shareholders registered in the books of the company at the close of
business on March 28, 1996.
OPERATIONS
The following table summarizes the profits, sales and assets of
the Amcor group by industry and geographic segments for the six
months to December 31, 1995 compared with results for the
corresponding period last year:
For half year ended December 31, 1995 (Spicers not consolidated in 1995)
Operating profit
Before
Income Tax Sales Revenue Total Assets
1995 1994 1995 1994 1995 1994
$m $m $m $m $m $m
INDUSTRY SEGMENTS
Packaging
Containers
Packaging (1) 121.3 116.1 1,229.9 965.6 2,101.3 1,919.5
Amcor Fibre
Packaging (1) 71.3 70.3 1,135.2 1,002.8 1,956.9 1,514.7
Total Packaging (1) 192.6 186.4 2,365.1 1,968.4 4,058.2 3,434.2 Paper Amcor Paper Group (1) 151.0 116.0 758.8 694.1 1,864.9 1,562.9 Paper Merchanting (incl. Trading)(1)(2) 22.2 37.8 502.6 936.5 563.3 914.2 Total Paper 173.2 153.8 1,261.4 1,630.6 2,428.2 2,477.1 Other (1) 8.4 4.3 1.1 0.2 390.4 416.0 Profit before interest & income tax 374.2 344.5 Net interest (67.3)(48.3) Profit before income tax 306.9 296.2 Abnormal items - (4.4) Inter-segment sales (397.6)(442.1)
306.9 291.8 3,230.0 3,157.1 6,876.8 6,327.3
GEOGRAPHIC SEGMENTS Australia (1) 289.5 277.1 1,798.1 1,904.3 4,295.1 4,081.8 New Zealand (1) 24.0 29.2 208.0 237.5 381.9 392.9 North America (1) 39.5 28.9 643.3 690.5 964.2 932.4 Europe (1) 16.7 1.4 485.1 224.0 909.4 702.3 Asia (1) 4.5 7.9 95.5 100.8 326.2 217.9 Profit before interest & income tax 374.2 344.5 Net interest (67.3)(48.3) Profit before income tax 306.9 296.2 Abnormal items - (4.4)
306.9 291.8 3,230.0 3,157.1 6,876.8 6,327.3
(1) Profit before interest and tax (2) Decreases due to non consolidation of Spicers in 1995 figuresREVIEW OF HALF YEAR Amcor's rate of growth slowed in the six months to December 1995, reflecting difficult market conditions in Australia and some overseas markets. In addition to the slowing of economic activity, the result was adversely affected by higher interest costs, an increase in the company income tax rate and the fact that from July 1, 1995 Spicers was no longer consolidated in the Amcor accounts. With Spicers not consolidated for the latest six months, sales were up 2% to $3,230 million and group profit before interest and tax rose 9% from $344.5 million to $374.2 million. However with Spicers accounted for on a consistent basis in both periods, sales were 18% higher than last year and profit before interest and tax was up 16%. Many of Amcor's businesses experienced lower demand in the December quarter, compared with the previous three months. In Australia, business in December, traditionally a busy month, was particularly subdued sub·due tr.v. sub·dued, sub·du·ing, sub·dues 1. To conquer and subjugate; vanquish. See Synonyms at defeat. 2. To quiet or bring under control by physical force or persuasion; make tractable. 3. . The results of the Amcor Paper Group were the best of Amcor's major businesses, while Amcor Merchanting and Trading and 50%-owned Kimberly-Clark Australia also performed well. During the half year many of Amcor's businesses experienced volatile raw material prices. In the first quarter paper prices reached historically high levels but began to decline quickly during the second quarter. While lower paper prices are usually beneficial to Amcor's converting businesses (fibre boxes, sacks, folding cartons The folding carton created the packaging industry as it is known today, beginning in the late 19th century. Basically, a folding carton is made of paperboard, and is cut, folded, laminated and printed for transport to manufacturers. , envelopes) the sudden slide in prices also had an adverse effect on stocks of high-priced paper already held. In some businesses significant adjustment to stock values was necessary. Prices of other raw materials, particularly plastic resins resins, n.pl complex, insoluble, sticky substances secreted by plants. Used as astringents, antimicrobials, and antiinflammatories, and are burned as incense. Can cause oral ulcers and epidermal irritations. , were also unstable unstable, adj 1. not firm or fixed in one place; likely to move. 2. capable of undergoing spontaneous change. A nuclide in an unstable state is called radioactive. An atom in an unstable state is called excited. during the half year and this contributed to margin erosion, especially in the first quarter. Amcor's businesses outside Australia contributed 23% of profit before interest and tax in the latest half year, compared with 20% in the previous corresponding period and 44% of sales, compared with 40% previously. This reflects the continuing strong performance of Amcor's larger businesses in the northern hemisphere hemisphere /hemi·sphere/ (hem´i-sfer) half of a spherical or roughly spherical structure or organ. cerebellar hemisphere either of two lobes of the cerebellum lateral to the vermis. . PACKAGING Total profit before interest and tax earned by Amcor's two major packaging businesses - Containers Packaging and Amcor Fibre Packaging - rose 3.3% from $186.4 million to $192.6 million in the December half year. Packaging sales rose 20.2% from $1,968 million to $2,365 million, which represented 73% of total group sales Group sales Block sale (of large amounts) of securities to institutional investors. group sales The distribution of a new security issue to institutional clients. . OUTLOOK Although Amcor's results for July-December 1995 were ahead of those for the corresponding six months of 1994, the rate of growth slowed markedly in the latter half of the period. Trading in some business segments in December was the slowest for many years. This slowdown has continued into the first months of 1996 and we do not foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. demand improving in the immediate future. Amcor continues to apply cost reduction programs, is focusing on cost competitiveness in all divisions and is carefully monitoring its capital expenditure commitments. In view of the decline in prices in many of the key fibre-based segments of the business and overall pressure on volumes it will be difficult to achieve profits in January-June 1996 at the levels achieved in the corresponding period last year. Amcor's businesses are all continuing to seek opportunities for growth which will underpin the company's continued progress. Amcor is a leading international packaging and paper company and one of Australia's largest public companies. The company's American depositary shares American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. are listed on the NASDAQ National Market System. One ADR ADR - Astra Digital Radio represents four ordinary shares. CONTACT: Amcor Limited Australia Stan STAN Stanchion STAN Stärke- und Ausrüstungsnachweis (German) Stan Standard Man (human patient simulator) STAN SEMCIP Technical Assistance Network STAN System Trace Audit Number STAN Star Trek Area Network Wallis Managing Director Tel: 011-613-9694-9424 or David Meiklejohn David (Davie) Ditchburn Meiklejohn (12 December 1900 - 22 August 1959) was a Scottish professional footballer most famous for his time with Scottish club Rangers. Born in Govan, Glasgow, Meiklejohn joined Rangers from junior club Maryhill F.C. Executive Director Finance & Administration Tel: 011-613-9694-9261 or United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Kathy Liebmann Gavin Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic & Company 212-373-0200 |
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