Rexam beats beverage can expectations in Q1

By Guy Montague-Jones

- Last updated on GMT

Related tags Beverage cans North america Rexam

Rexam has revealed that first quarter volumes and profitability in beverage cans were better than it expected at the start of the year.

Ahead of the important summer trading period, Rexam announced that overall results in the quarter were in line with its expectations.

But the global picture hid variations within the group. Performance in beverage cans was described as being “somewhat better than we anticipated at this stage.”

In a conference call with investors, Graham Chipchase, chief executive of Rexam, revealed that, excluding North American standard cans, first quarter can volumes were up 9 per cent.

Chipchase reiterated his forecast that volumes of standard cans in North America would fall 15 per cent this year and that most of the lost volume would be made back by 2013. In the meantime, he said profitability in the North American business was maintained thanks to the strong performance in specialty cans for products like iced teas and beer.

Looking at other regions, the CEO said Rexam was slightly ahead of the market in Europe and double-digit growth was seen in South America and Russia.

But the strength in beverage cans was not enough for Rexam to change its outlook for the full year. The company said its make-up and personal care packaging business was hit by lower than anticipated volumes and higher resin prices.

Overall Chipchase gave a cautious assessment of the quarter and the prospects for the year ahead.

“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.”

Regarding Rexam's plans to sell its beverage closures business, he said efforts began in January / February and “were progressing well.”

Related topics Processing & Packaging

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