18th Nov 2008 07:00
Rexam PLC
Interim Management Statement
18 November 2008
Group results for the four months ended 31 October, including the positive effect of currency translation, were in line with our expectations, and our outlook for 2008 remains unchanged.
Performance in our Beverage Can business was solid. Despite a poor European summer, there was good growth throughout the region except in Russia where we are seeing signs of softness. In the Americas, volumes remained strong in South America, whilst in North America soft drink can volumes for the 3rd quarter were down versus last year for both Rexam and the market. Rexam has reduced its US capacity by 9% to reflect lower market demand, as announced on 30 July, and we continue to monitor closely the evolution of the market. Specialty can volumes showed good growth in all regions. Pricing initiatives, contractual inflation escalators and a constant focus on efficiencies continue to offset input cost pressures.
Plastic Packaging is trading as expected. The Healthcare division continued to perform strongly, driven particularly by Pharma sales in Europe. In the Personal Care division, performance in Dispensing Systems and Home & Personal Care continue to be soft in North America, reflecting the macroeconomic environment. In the Closures division, sales slowed due to lower overall soft drink consumption in convenience outlets in the US. The integration of OI Plastics is progressing well, the planned synergies continue to come through as expected, and the SAP implementation is now substantially complete.
Our capital expenditure programme is on track, although marginally up on our plans due to recent sterling weakness. We had been planning for a significant reduction in 2009 capital expenditure, and in light of the current economic environment we are further reviewing our spend for next year. Net debt remains in line with our plans and, as previously advised, the 2009 debt re-financing needs were completed in June of this year.
Commenting on current trading, Leslie Van de Walle, Rexam's Chief Executive Officer said:
"Rexam's performance since the interim results, helped by favourable currency translation, is on track and our expectations for 2008 remain unchanged. Rexam is a defensive and resilient company, but it is not yet clear how the economic downturn will affect our trading in 2009. We will continue to manage stringently those levers over which we do have control, including a rigorous focus on efficiencies and cost reductions."
Enquiries
Rexam
Leslie Van de Walle, Chief Executive Officer +44 20 7227 4100
David Robbie, Finance Director
Sandra Moura, Head of Investor Relations
Financial Dynamics
Richard Mountain +44 20 7269 7291
Rexam will host a conference call for investors and analysts on Tuesday 18 November at 08:00 (UK time).
Participants dial-in no: +44 (0) 1452 569 393
Call reference: 68459578
A replay service will be available until 22 November Dial-in no: +44 (0) 1452 550 000 Password: 68459578#
Notes to Editors
Rexam is the No 2 global consumer packaging company. It is the leading global beverage can maker, and a major global player in rigid plastic packaging. Our vision is to be the leading global consumer packaging company. We are business partners to some of the world's most famous and successful consumer brands as well as young, entrepreneurial start-ups. We offer a broad range of packaging services and solutions for different industries, using different materials and technologies. Three things characterise us - leadership in our industry, our commitment to innovation and our passion to deliver exceptional value. Rexam's sales from ongoing operations are in the region of £4 billion. We employ some 22,300 people in more than 20 countries and are a member of the FTSE 100. Rexam's ordinary shares are listed with the UK Listing Authority and trade on the London Stock Exchange under the symbol REX. For further information, visit Rexam's website at www.rexam.com
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