Business News
Amcor announces interim profit result for six months ended December 31, 2007
Wednesday 20. February 2008 - In announcing the half year result, Amcors Managing Director and Chief Executive Officer, Ken MacKenzie said: "The profit before interest and tax of the continuing businesses, expressed in local currencies, was up 10.3%. All segments reported higher earnings and this continues the momentum of our turnaround program.
“The past 12 months have seen an inflexion point in the operational performance of the company. This was first evident in the strong operating performance in the second half last year and has continued into the first half of this year.
“The first half profit of $185 million was a very solid result, given the strong Australian dollar. Around 70% of Amcors earnings are sourced offshore, mostly in North America and Europe, and the translation of these earnings into Australian dollars for reporting purposes, had a $16 million negative impact on reported profit after tax.
“The strong operating cash flow of $93 million was a result of continued improvement in all aspects relating to the management of cash. In particular, the average working capital to sales ratio decreased from 10.5% to 9.7%. This continues the improving trend of the past two years where average working capital to sales has reduced from 13.3% to 9.7%, generating $400 million in cash.