Consolidated net sales of $777 million in the fourth quarter of 2016 were $13 million higher than 2015, reflecting higher volumes in the paper and packaging segment as 724,000 tons of paper were shipped during the fourth quarter of 2016 compared to 658,000 tons a year earlier. The Company's average mill selling price of $617 per ton in the fourth quarter of 2016 was lower by $29 per ton compared to the fourth quarter of 2015 due to the combined impact of lower export and domestic containerboard selling prices and lower export kraft paper prices. Average mill selling prices decreased $9 per ton from the third quarter of 2016, reflecting seasonal mix, partially offset by the impact from the October $40 per ton containerboard price increase. Distribution segment sales declined by $5 million due to lower volume and prices when compared to the fourth quarter of 2015. Operating income of $38 million for the 2016 fourth quarter increased by $9 million, or 30 percent, compared to the 2015 fourth quarter. Financial performance in the current quarter improved mainly due to higher sales volumes, lower planned maintenance costs, lower compensation and benefit costs and a reduction in the fair value of the contingent consideration for the Victory Packaging acquisition. These factors were partially offset by lower selling prices, the impact of Hurricane Matthew and a non-cash charge for withdrawing from a multiemployer pension plan. click Read More below for additional detail
Amcor announces today the acquisition of Deluxe Packages, a privately owned flexible packaging business for US$45 million. The acquired business will form part of Amcor’s newly-formed Flexibles Americas business group.
Deluxe operates one well-invested manufacturing plant with attractive technologies, capabilities and highly skilled co-workers in Yuba City, in Northern California. The business generates revenues of approximately US$42 million providing high-performance flexible packaging products to customers in the fresh food and snack segments.
Amcor CEO and Managing Director, Ron Delia said: “North America is an attractive region for flexible packaging and this acquisition represents an excellent opportunity to accelerate profitable growth.
With the addition of Deluxe Packages, Amcor’s customer value proposition in the specialty food packaging segment is strengthened with a combined east and west coast footprint. This acquisition will enhance growth in priority segments and generate strong returns.”