Rexam, the world's largest manufacturer of beverage cans, has released a trading update (release). In the five months to the end of May global volumes grew by just one per cent versus last year. Accordingly, Rexam expects operating performance in the first half of the year will be slightly below that of last year.
The company has initiated plans to sell its Healthcare business, stating that this is in line with ist "long term strategy to focus on beverage cans and maximise shareholder value".
Graham Chipchase, Rexam's chief executive said:
It has been a challenging first half, but we have taken assertive action on costs to mitigate the impact on our performance and maintain our capital discipline. Although we are still in the midst of our seasonally important summer period, we are managing the business proactively to overcome these challenges, and we continue to expect full year performance to show improvement over 2012, even if progress is likely to be less than previously anticipated. Following the proposed sale of Healthcare, Rexam will be a focused beverage cans business with a strong balance sheet and a clear strategy to maximise long term shareholder value.