Rexam Says Trading In Line Despite Outlook; New CEO
13.11.09, 12:10 Uhr |
Lesezeichen
|
Versenden
LONDON -(Dow Jones)- Rexam PLC (REX.LN), the world's largest beverage can maker, Friday said it will meet expectations for the full year despite a cautious trading outlook, and named Graham Chipchase to succeed retiring chief executive Leslie Van de Walle.
Chipchase, 46 years old, who has been the director at the plastic packaging division since 2005, will take the reins on Jan. 1. Van de Walle, 53, said he would concentrate on and develop his nonexecutive interests.
The company, which produces beverage cans and plastic containers for food, home care and chemicals, as well as syringes and lipstick cases, also said in a trading update for the period since July 1 that group results were in line with expectations as cost cutting and foreign-exchange-rate gains offset weaker volumes.
Van de Walle said, "Despite continued volume weakness our strong focus on reducing cost, increasing efficiencies and improving cash flow, give us confidence that we will meet market expectations for the full year.
"We remain cautious about the trading outlook, but will continue to focus on cash and costs to ensure we are well placed to participate fully in the upturn when it comes."
At 0805 GMT, Rexam shares traded up 3 pence, or 1%, at 292 pence in a lower London market. The FTSE 100 index traded down 0.1%. Rexam's shares have fallen 7.6% since the start of the year.
But Seymour Pierce analyst Kevin Lapwood said that Van de Walle had handed "the poison chalice to Chipchase," the former finance director who has been grappling with the problems in the plastics division for a couple of years. "At least he will know what to expect," he added.
Rexam, struggling as the recession led to dwindling demand, had to raise GBP350 million to cut debt and protect its investment-grade credit rating. It has halted production of cans at two plants, in Russia and North America and cut capacity in Europe, including a plant closure in France. It expects to trim costs significantly by 2010.
The company is still experiencing low volumes in Europe in its beverage cans division as well as challenging trading in speciality cans and Russia. In North America, volumes were in line with the market while the business in South America continued to grow. Rexam's cans business is expected to deliver some GBP40 million in savings by 2010.
In plastic packaging, cost reduction actions partly offset continued weak demand for carbonated soft drink and bottle water closures, which may now be a more enduring trend, the company said.
Rexam is consolidating six plants in this division and reducing the work force by some 10%, which will deliver cost savings of GBP30 million by 2010.
The company, which produces beverage cans and plastic containers for food, home care and chemicals, as well as syringes and lipstick cases, also said in a trading update for the period since July 1 that group results were in line with expectations as cost cutting and foreign-exchange-rate gains offset weaker volumes.
Van de Walle said, "Despite continued volume weakness our strong focus on reducing cost, increasing efficiencies and improving cash flow, give us confidence that we will meet market expectations for the full year.
"We remain cautious about the trading outlook, but will continue to focus on cash and costs to ensure we are well placed to participate fully in the upturn when it comes."
At 0805 GMT, Rexam shares traded up 3 pence, or 1%, at 292 pence in a lower London market. The FTSE 100 index traded down 0.1%. Rexam's shares have fallen 7.6% since the start of the year.
But Seymour Pierce analyst Kevin Lapwood said that Van de Walle had handed "the poison chalice to Chipchase," the former finance director who has been grappling with the problems in the plastics division for a couple of years. "At least he will know what to expect," he added.
Rexam, struggling as the recession led to dwindling demand, had to raise GBP350 million to cut debt and protect its investment-grade credit rating. It has halted production of cans at two plants, in Russia and North America and cut capacity in Europe, including a plant closure in France. It expects to trim costs significantly by 2010.
The company is still experiencing low volumes in Europe in its beverage cans division as well as challenging trading in speciality cans and Russia. In North America, volumes were in line with the market while the business in South America continued to grow. Rexam's cans business is expected to deliver some GBP40 million in savings by 2010.
In plastic packaging, cost reduction actions partly offset continued weak demand for carbonated soft drink and bottle water closures, which may now be a more enduring trend, the company said.
Rexam is consolidating six plants in this division and reducing the work force by some 10%, which will deliver cost savings of GBP30 million by 2010.
DJG/dok
