Rexam issues interim statement
Rexam has issued its interim management statement for the period from 1 January 2014.
Overall results are reportedly in line with the company’s expectations and its financial position remains unchanged from that at 31 December 2013.
In Western Europe volumes in standard and specialty cans had a quiet start to the year. In Russia, the business saw some volume growth, but it is still early in the year. In North America, specialty cans grew in Q1, and performance in standard cans was in line with the market. In South America, volumes grew strongly in both standard and specialty cans due to good weather, the timing of Carnival, and in anticipation of the FIFA World Cup.
The sale of the Healthcare business is proceeding according to plan. As previously announced, following the completion of the sale of the Pharmaceutical Devices and Prescription Packaging divisions, £450m of the proceeds will be returned to shareholders.
Graham Chipchase, Rexam’s chief executive says, “Overall performance in the quarter was in line with our plans. The strong performance of our South American business helped offset a subdued start to the year in Western Europe. It is still early in the year, however, and it is the busy summer season that traditionally influences our full year results. In 2014, we are facing foreign exchange translation headwinds and metal premiums are at an all time high, but we continue to expect to make further progress on a constant currency basis.
The business is performing well operationally, and we remain committed to managing what we can control and focusing on cash, cost and return on capital employed as we pursue our strategy of balancing growth and returns.”