Packaging company Amcor has posted a 14 per cent fall in annual profit, but says it expects profits to increase in the current year.
Amcor posted net profit for the year ended June 30 of $183 million, down 13.6 per cent from $211.7 million in the prior year.
Amcor shares rose in early trading, gaining 17 cents, or 2.7 per cent, to $6.56.
Revenue was 3.3 per cent higher at $9.8495 billion, and profit before tax was $320.4 million, up from $251.2 million in 2008/09.
Amcor declared a final dividend of 17 cents per share, nil franked, steady with the prior year, and bringing total dividends for the year to 29.5 cents, down from 34 cents.
Amcor said it had a "significant negative translation impact" from the strong Australian dollar -- the exchange rate hurt the results -- and it faced a significant items expense after tax of $226.2 million.
In a presentation to media, Amcor said it offered no change to expectations for 2010/11, although it anticipated a lift in profit "from $409 million".
Profit growth in the current year would be driven by the full year effects of the integration of the Alcan Packaging business, synergies of $100-120 million, the the acquisition of Ball Plastics.
Amcor said further synergies in 2010-11 were expected to add 60-70 million euros ($A85.92-100.24 million) to proforma profit before tax (PBIT).
Earnings in the first half of the current year would be affected negatively by a lag in recovery of higher raw material costs.
AAP