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Rexam shares jump on contract negotiation news

01-Feb-2011

Related topics: Financial

Shares in Rexam rose sharply yesterday on news that customer contract negotiations in the North American division of its beverage can business have been completed successfully.

Rexam shares jumped 3 per cent in trading yesterday after it confirmed, as a result, that operating profit in Beverage Can North America in 2011 is expected to remain comparable in 2010 despite an anticipated dip in net 12oz volumes this year. The lost 12oz volume is expected to be recovered by 2013 through already signed medium term contracts.

In addition, the drinks can specialist said it has signed a long term contract with its largest customer in Brazil.

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