Packaging company Amcor Ltd
(ASX:AMC) has posted a 3% rise in profit for the first half of fiscal 2010 as cost cutting helped to offset the impact of lower volumes in some sectors.
For the six months to December 31, 2009 net profit before one- off items came to $172.5 million up from $167.4 million in the first half of fiscal 2009.
Amcor declared an interim dividend of 12.5 cents a share down from 17 cents in the same half a year ago.
The company completed the acquisition of the Alcan packaging business from Rio Tinto on February 1, 2010.
The company says volumes have stabilised at levels higher than those experienced in the second half of 2008/09 and prices for waste paper are currently higher than the second half last year.
As a result, if current conditions continue, earnings are expected to be substantially higher in the second half relative to the same period last year.
CEO Ken MacKenzie says although it is unclear when economies will improve, the Alcan acquisition gives the company confidence that it can grow shareholder value through the ability to enhance its value proposition to customers, improve its operational performance and reduce costs.
For fiscal 09 Amcor earned profit of $211.7 million.
