Global packaging giant Amcor does not expect US President Donald Trump's protectionist rhetoric to hurt business, but says weak economic conditions are affecting markets in Brazil and Argentina.
Markets are worried that the US may apply new tariffs on goods from the likes of China, Japan, Mexico and Canada, which could provoke retaliatory action.
But chief executive Ron Delia says the local nature of the packaging industry provides Amcor with a buffer against rising geopolitical uncertainty.
"We're in over 40 countries, so we have 200 plants that supply local markets. There's no imports or exports to speak of in the business," Mr Delia said on Monday.
"We're not ignoring things that happen more broadly around us, but for the most part, we're very well positioned."
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Mr Delia said Brazil and Argentina - the two biggest markets in South America - were suffering from very slow economic growth, high inflation and currency devaluations.
"Amcor's no different than any of our customers or peers in that volumes have been very subdued in both of those countries," Mr Delia said.
Nonetheless, Amcor had been operating in both markets for more than 20 years and had been very successful in navigating the economic cycles.
Amcor also said it was on track to deliver further strong earnings growth in the 2017 full financial year as it benefits from recent acquisitions and restructuring of its flexible packaging business.
The group expects profit after tax to be higher than the $US671 million delivered in 2015/16.
Amcor says its acquisitions of Alusa, South America's largest flexible packaging manufacturer, and North American specialty containers maker Sonoco in 2016, and the restructuring in its flexibles business will underpin more than $US150 million in growth in profit before tax and interest over the next three years.
"We're still well placed in the current environment, and more importantly, we feel like we've got good growth embedded in our business for the medium to longer term," Mr Delia said.
Amcor on Monday reported a six per cent fall in net profit to $US286.6 million ($A373.1 million) for the six months to December 31, 2016.
Its bottom line took a previously flagged $US25 million pre-tax hit related to its rigid plastics operations in Venezuela, where economic conditions have deteriorated.
Excluding Venezuela, Amcor's profit after tax was up 3.8 per cent to $US308.6 million ($A401.7 million) on a constant currency basis.
Shares in Amcor were 65.5 cents, or 4.5 per cent higher at $15.205 at 1322 AEDT.
AMCOR EXPECTS HIGHER FULL-YEAR PROFIT
* First-half net profit down 6.2pct to $US286.6m
* Revenue down 1.8pct to $US4.47bn
* Unfranked interim dividend of 19.5 US cents, up 0.5 US cents.
