Paper and packaging company Orora has maintained its view that it expects higher earnings for 2018, subject to global economic conditions.
The packaging and recycling firm said on Friday that subject to global conditions, constant currency earnings for the full year will be higher than 2017 – repeating guidance given at its half-year results in February.
Last financial year, Orora delivered earnings before interest and tax of $302.3 million in the 12 months to June 30.
In an update on Friday Orora said conditions in its North America markets remain “challenged for growth” but it expects a positive impact over the medium term from the recently announced US corporate tax cuts.
The company also said recent moves by China to restrict imported recycling materials was impacting Australian kerbside recycling.
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China banned acceptance of some waste paper and plastics that are considered contaminated, forcing many Australian recycling programs to direct material into landfill.
Orora said the value of mixed recycled paper had fallen sharply following China’s clampdown and additional sorting methods would be needed to open up new uses for materials.