Can maker Rexam says trading is in line but its shares fizzle out
PACKAGING group Rexam pared back early gains yesterday to close flat, after reporting that its sales were in line with expectations.
Rexam, which manufactures products from drinks cans to cosmetics packaging, reported good volumes in its European business.
The firm said that its North American arm, which makes cans for Pepsi, Jim Beam and Starbucks, was clawing back gains that were lost in the last year, while South America was also showing growth.
However, Rexam’s healthcare business is trading slightly below levels seen last year as profits come off patent and fewer people than last year suffer from flu.
Efforts to sell off Rexam’s personal care business are going to plan, it added in an interim management statement ahead of its annual shareholder meeting.
All motions at the meeting were passed with at least 92 per cent approval.
Graham Chipchase, Rexam chief executive, said in a statement: “The global economic outlook remains uncertain but, at this stage, we continue to expect 2012 to be another year of progress as we maintain our focus on cash, costs, and return on capital employed.”
Analysts at Singer Capital Markets said the shares now “lack fizz” after a good run in the wake of Rexam’s asset disposal plans.