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Rexam trading in line

Consumer packaging giant Rexam said results since the start of January have been in line with company expectations and, while volume growth has been slower than predicted towards the end of the quarter, it expects to make further progress this year.

Consumer packaging giant Rexam said results since the start of January have been in line with company expectations and, while volume growth has been slower than predicted towards the end of the quarter, it expects to make further progress this year.

Global can volumes grew 3%, which was slightly lower than expected, however Rexam said the financial impact was offset by foreign exchange translation benefits and cost savings.

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Volume growth in Beverage Cans was boosted contract gains in North America while in Europe good growth in Scandinavia was largely offset by weakness in Russia and a slow start to the year in the rest of Western Europe.

Growth in Africa, Middle East and Asia was strong throughout the region, the group explained.

In South America, volumes were slightly down due to unfavourable mix.

"However, the new plant in Belem has now begun production and will allow us to capture growth in standard cans in the northern region and free up capacity to meet specialty can demand," Rexam said.

Its Healthcare business is trading as expected, with growth in drug delivery devices and a good flu season offsetting higher prices and volume weakness at its primary packaging business.

Since December 31st 2012 net debt has increased following the £395m return of cash from the sale of Personal Care.

Graham Chipchase, Rexam's Chief Executive said: "Although volume growth so far has been slower than anticipated, especially towards the end of the quarter, this was offset by foreign exchange translation benefits and cost savings."

"It is still early in the year, and the busy summer season traditionally influences our full year results. We continue to expect to make further progress in 2013 and remain on track to achieve our 15% return on capital employed target."

CJ

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