Amcor Limited (ASX:AMC) announced today that due to rising raw material prices there will be a negative hit to earnings of $US15 million in 2H18, the most significant impact since FY11.
The company has previously issued a downgrade to FY18 earnings. In response, the company has increased prices to recover the higher input costs, but there is a time lag before the higher prices will have an impact.
Also, Amcor said that the Rigid Plastics division is seeing lower volumes, which will have a more significant effect on 2H18 earnings than on 1H18 earnings.
Amcor is down 2.4% at the time of writing to $13.44. The company is paying an annual dividend yield of 4%, which is unfranked and is trading on a forward price to earnings ratio of 16x. The share price is down 12% in a year.
