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Trading statements

Rexam says trading in line, issues cautious outlook

12 November 2015 07:27

Rexam said, in a trading update for the period since July 1, results for the group are in line with its plans. Looking into 2016, it said the environment remains challenging but that it continues to expect growth in global can volumes.

"Pricing reductions in Europe will be mostly offset by the benefit of the restructuring programme announced in February this year," Rexam said in a statement.

"We will incur ramp-up costs for our new plants in Widnau and India and the devaluation of the Brazilian Real against the US dollar, if maintained, will give rise to further FX losses.

"Finally, at current aluminium premium rates, we would expect a £30-35m tailwind, although premium remains uncertain and a further update will be provided at our full year results."

Referring to Q3, it said overall global beverage can volumes were up 3% (1% excluding the acquisition of UAC).

"Volume growth in Europe slowed down as expected with good growth in Germany, Spain and Austria partially offset by softness in Russia, Scandinavia, Belgium and the Netherlands.

"Volumes were subdued in the Middle East as some borders remained closed. In North America, standard volumes continued to be impacted by the decline in the carbonated soft drink market whilst specialty volumes continued to perform well.

"Volumes in South America returned to growth in the quarter with a decline in standard cans outweighed by strong growth in specialty cans. After taking into account the impact of foreign exchange, our expectations for the full year are unchanged. "

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