Rexam sees third-quarter weakness in Healthcare

Rexam, the FTSE 100 consumer packaging giant, said that trading in the third quarter was 'broadly in line with expectations' despite weakness in its Healthcare division.

Rexam, the FTSE 100 consumer packaging giant, said that trading in the third quarter was 'broadly in line with expectations' despite weakness in its Healthcare division.

The company, which manufactures 57bn drinks cans each year as well as injection-moulded products for the healthcare and household goods markets, said that Beverage Cans volumes were up 6% in the three months to the end of September, "in line with our plans".

European volume growth excluding Russia slowed from the first half as expected, while Russia returned to growth.

"In North America the recovery of some of the standard can volumes lost in 2011 continued to drive our performance, and growth in South America accelerated," Rexam said.

However, the company revealed that its performance in Healthcare was "somewhat below our expectations". This was mainly due to lost business in the animal health part of the Pharma division.

Rexam produces a range of products in Healthcare, including plastic containers and closures, drug delivery and medical devices, pharmaceutical pumps and valves as well as ophthalmic packaging.

Meanwhile, the two-part $709m Personal Care disposal, first announced in July, is still ongoing. The High Barrier Food packaging business was sold in August but the sale of the Cosmetics, Toiletries and Household Care business still needs the approval from Chinese authorities. Completion is still expected by the end of the year.

Chief Executive Graham Chipchase said: "Despite a challenging trading environment, the Group's overall performance is broadly in line with our expectations.The divestment of Personal Care is in its final stages and we are on track to return £370m of the proceeds to shareholders.

"We continue to focus on generating cash, managing costs and improving return on capital employed, and our progress to date gives us confidence in achieving our 15% return on capital employed target by the end of 2013."

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
5 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

Council tax increases 2023 – how much more will you pay?
Tax

Council tax increases 2023 – how much more will you pay?

Your council tax bill will go up in April - we reveal the councils that have confirmed what this year’s increase will be.
23 Jan 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
27 Jan 2023
When will interest rates go up?
UK Economy

When will interest rates go up?

New interest rates will be announced on 2 February – we look at what to expect.
26 Jan 2023