SYDNEY - [AAP] Packaging giant Amcor (ASX: AMC) has maintained its full year profit guidance but delivered a cautious outlook after a challenging first quarter.

Parts of the company's business are performing well, but it was a difficult September quarter, particularly in emerging markets, chief executive Ron Delia told shareholders.

"In August, we made some cautionary comments related to market conditions, customer performance and raw materials costs, and these issues have continued or worsened through the September quarter," he told Amcor's annual general meeting.

"We have taken the appropriate actions and moved quickly and decisively in response."

The company in August said it expected to deliver after tax earnings growth in constant currency terms in the 2017/18 financial year, and deliver growth of between 10 per cent and 15 per cent in shareholder value.

Amcor still expects to meet that forecast, assuming some improvement in trading conditions compared to the September quarter, Mr Delia said.

In its flexible packaging business, which accounts for two-thirds of Amcor's sales, Mr Delia flagged a hit to pre-tax profit of between 15 to 20 million euro ($A23-$A30 million) in the first six months of the financial year.

This would be a result of higher raw material costs, which have risen 10 per cent so far this financial year, and weak performance across emerging markets.

The company has increased prices in response, and is aggressively adjusting capacity to meet current trading conditions, while also cutting costs across the business, Mr Delia said.

In its rigid plastics business, weak demand and de-stocking has impacted beverage volumes, but the rest of the business has continued to grow, he said.

Amcor expects first-half earnings in the business will largely be in line with the previous year.

Amcor shares were down 69 cents, or 4.4 per cent, to $15.15 at 1350 AEDT.

 

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