The world’s largest maker of drinks cans says it is also seeing some recovery in its plastic packaging operations, although demand has remained weak for bottle top closures for items such as soft drinks bottles.
Rexam chief executive Graham Chipchase said: “Trading in the first quarter was encouraging, with beverage can volumes better than expected in Europe and North America. However, it is still early in the year, and trading in the traditionally busy summer season will influence our full year performance. As previously expected, we are seeing some recovery in plastic packaging, although closures remains weak. The execution of our cost reduction initiatives and our continued focus on cash generation gives us confidence of improved performance in 2010.”
Analysts currently expect the firm, whose customers include Coca-Cola and Pepsi, to post 2010 pretax profit of about £355m up from £285m last year, according to Thomson Reuters I/B/E/S.
Source: Rexam/Business NewsWire
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