30th Jul 2015 07:56
LONDON (Alliance News) - Drinks can maker Rexam PLC on Thursday posted a sharp fall in first half pretax profit thanks to higher metal prices in the period, which offset a rise in revenue as beverage can volumes increased.
The FTSE 250-listed company, which is currently in the process of being acquired by US rival Ball Corp for GBP4.3 billion, said its pretax profit in the first half was down to GBP82 million from GBP164 million last year, as its operating margins were squeezed by higher metal prices and the commoditisation of certain specialty cans in North America.
Revenue for Rexam rose to GBP1.97 billion in the half, up from GBP1.88 billion a year earlier, as beverage can volumes rose by 3%.
The group said it will pay an interim dividend of 5.8 pence per share, unchanged year-on-year, and said the Ball deal is progressing on track.
"Results for the half year were in line with our expectations. Trading in the first half was strong in Europe and the Rest of the World, but with some weakness in the Middle East. In the Americas, standard cans continued to decline whilst specialty cans continued to grow," said Graham Chipchase, Rexam's chief executive.
"Looking ahead, 2015 remains in line with our expectations with softer volumes in North and South America offsetting the benefit of the current lower metal premium," Chipchase added.
Shares in Rexam were up 0.2% to 549.50 pence on Thursday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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