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Rexam on course despite ‘soft’ US
FoodBev Media

FoodBev Media

2 May 2008

Rexam on course despite ‘soft’ US

Rexam of the UK, the world’s second biggest consumer packaging group and biggest beverage can maker, reported a “slow start” to 2008 in North America – but more encouraging results in Europe.

In an interim management statement issued ahead of Rexam’s annual meeting on 1 May, the company said: “Group results for the first quarter in constant currency were in line with our expectations, and our outlook for 2008 remains unchanged.

“Our beverage can business is performing well overall. In Europe, we have seen good pricing and particularly strong volume growth. In the Americas, volumes remain buoyant in South America, whilst in the US demand for soft drinks cans has started the year slowly, with volumes down for both Rexam and the market.

“After a strong fourth quarter in 2007, our speciality can volumes have started quietly, but it is still very early in the season. Good pricing, contractual inflation escalators as well as a continued focus on efficiencies have offset higher input costs.”

Rostar acquisition Rexam’s plastic packaging business overall performed “as expected,” but demand for closures and home and personal care packaging continued to be soft in North America. During the quarter, Rexam continued the successful integration of OI Plastics, and also completed the $297 million acquisition of Russian beverage can maker Rostar.

Commenting on the results, CEO Leslie Van de Walle said: “Rexam has made a good start to the year, and we are particularly pleased with our beverage can growth in Europe.”

During the annual meeting Peter Ellwood, 64, was formally elected as new Chairman of Rexam. He succeeds Rolf Börjesson, 65, who stepped down after leading the global packaging giant for eight years as CEO and a further four years as Chairman.

Ellwood, who joined Rexam’s Board in February as a non-executive director and Chairman Designate, was formerly Chairman of ICI, and before that Group Chief Executive of Lloyds TSB.

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