23 February 2011 09:48 [Source: ICIS news]
LONDON (ICIS)--Rexam reported a 20% year-on-year increase in its 2010 underlying operating profit to £535m (€629m, $862m), partly driven by cost-reduction measures, the UK-based packaging manufacturer said on Wednesday.
Total sales were up slightly by 2% year on year to £4.96bn due to strong volume growth in specialty cans in all regions, Rexam said.
Rexam’s underlying operating profit from its beverage cans segment in 2010 rose 27% year on year to £394m as sales grew 3% to £3.68bn.
“Our successful focus on the fundamentals – controlling costs, optimising cash and improving our return on capital employed – generated these record results, and led to a much stronger balance sheet at the year end,” said Sir Peter Ellwood, Rexam’s chairman.
“We have reduced net debt to £1.68bn, down from £1.83bn a year ago,” he added.
Looking ahead, the company said it was now in a stronger position to grow, which included further expansion in emerging markets.
“Going forward, we will remain focused on increasing our return on capital, optimising cash and controlling costs, while making disciplined investments to improve our growth and returns over time,” said Graham Chipchase, Rexam’s chief executive.
“We expect 2011 to be a year of continued progress,” he added.
($1 = €0.73, €1 = £0.85)
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