Business

Amcor, the Australian packaging manufacturer, has reported a 52% fall in profit after tax and significant items to A$258.8m (£120.4m) in the 12 months to 30 June.

Its profit before interest, tax, depreciation and amortisation fell by 11% in the year to A$1.1bn.

The company said its financial performance had been hit by negative exchange rates and the effect of divestments during the past year.

Amcor's sales also fell to A$9.3bn, down by 14% on 2007.

The company's PET Packaging business increased sales to A$3bn, compared with A$2.8bn in 2007.

Amcor Flexibles reported an increase in sales to A$3bn in the year, compared with A$2.9bn in 2007.

Ken Mackenzie, Amcor's managing director, said: "There is evidence that global economies are slowing and this could impact the growth in sales. Amcor's businesses are relatively defensive with over 90% of sales in the consumer stables sector, specifically food beverage, tobacco packaging and healthcare.

"Over the past three years there have been comprehensive programmes implemented to ensure rising costs are recovered through higher selling prices. The growth in earnings for the continuing business over the past 18 months is a clear demonstration of the success of these efforts and we expect this trend to continue," he said.

Amcor announced in June that it was to invest A$150m on a third glass furnace at its wine bottle plant at Gawler, South Australia.