Packaging company Amcor Ltd
(ASX:AMC) says full year earnings for its Australasian business are expected to be higher.
Managing director Ken Mackenzie says Amcor Australasia first quarter earnings are being compared to a period which is prior to the slowdown in the Australian economy.
Overall Mr Mackenzie says trading during the first quarter for the group is consistent with expectations, saying that volumes are generally lower than for the same time last year, however in most businesses they appear to have stabilized at the current levels.
Mr Mackenzie says the full year impact on reported earnings due to the movement in the Australian dollar is uncertain.
He says the current sensitivity in reported earnings to movements in the exchange rate is $3 million in profit after tax for every one cent movement against the US dollar and $3 million in profit after tax for every one cent in movement against the Euro.
The full year impact to profit will depend on the exchange rate for these currencies over the next nine months as well as the exact timing of the closing of the Alcan Packaging acquisition.
Amcor’s profits have fallen in the last two years since reaching a high of $533.7 million in 2007.
