Packaging
Rexam: Interim Management Statement
Thursday 05. May 2011 - Rexam PLC, the global consumer packaging company, today issues its interim management statement for the period from 1 January 2011.
First quarter results for the Group overall are in line with our expectations, and our financial position is largely unchanged from the position at 31 December 2010.
In Beverage Cans, European volumes grew in both standard and specialty cans, with improved volumes in Russia. In North America, as expected, standard can volumes were lower, but specialty cans continued to grow strongly and the business is on track to deliver underlying operating profit in 2011 comparable with 2010.The business in South America continues to grow strongly and the investment plans to increase capacity in the region, including the new Brazilian plant announced last month, are on track and within budget. Overall performance in Beverage Cans is somewhat better than we anticipated at this stage.
In Plastic Packaging, we saw good volume and pricing in Healthcare especially in Prescription Packaging. In Personal Care, good growth in the High Barrier Food container business was more than offset by weakness in Home and Personal Care and Make Up due to soft volumes and input cost inflation. Although it is still early in the year, we are now more cautious on the trading outlook for Plastic Packaging. The process to divest the Closures business is progressing well.
Graham Chipchase, Rexams Chief Executive said:
“Trading so far this year has been encouraging, and overall performance is comfortably in line with our plans. However, it is still early in the year and the traditionally busy summer season will influence our full year results. Our continued focus on return on capital employed, costs and cash generation gives us confidence of improved performance in 2011.”