Amcor's profit rises 16 per cent Packaging company Amcor has increased its first half profit by 16 per cent and forecast growth in its underlying profit for the full financial year. Amcor made a net profit of $238 million in the six months to December 31, up from $205 million in the same period the previous year. The company on Monday said volumes in its key markets in developed countries were stable in the period, while volumes grew strongly in its emerging markets. Profit growth also came despite the impact of the high Australian dollar on its earnings from overseas, which detracted $20 million from its profit, Amcor said. "The outlook for the current year remains unchanged from the full year results in August," chief executive Ken MacKenzie said in a statement. It is expected Amcor will deliver another year of higher underlying profits in the current year. Amcor's underlying profit in the six months to December of $322 million was up six per cent from the previous corresponding period. Amcor took a $83.7 million hit in significant items relating to the closure of its cartonboard plant in Queensland, and another $20 million charge related to the high Australian dollar. The group's flexible packaging division's profit before interest and tax rose 4.7 per cent to $344.6 million after benefiting from volume growth in emerging markets and the integration of the Aperio and Aluprint acquisitions. The rigid plastics division also increased its profit, by eight per cent to $122.9 million, while the Australasian and packaging section had a 7.8 per cent drop to $82.8 million. Amcor increased its unfranked interim dividend to 19.5 cents a share from 18 cents. Morningstar analyst Nathan Zaia said Amcor's results had come in a little below expectations, mainly due to lower profits in the flexible packaging division during the second half. Management say this is a temporary effect of acquiring lower margin businesses. Once synergies are extracted, profitability will return," he wrote in a note to clients. Given management's track record of integrating acquisitions in recent years, particularly with Alcan, we are inclined to back management's capability to get the job done.