18 April 2013 10:02 [Source: ICIS news]
LONDON (ICIS)--Rexam’s global can volume growth during the first three months of 2013 grew at a lower-than-expected 3% year on year, the UK-based packaging maker said on Wednesday.
Despite disappointing volume growth, the company said its financial impact was offset by foreign exchange translation benefits and cost savings.
Graham Chipchase, Rexam’s chief executive said: “Overall financial performance was in line with our expectations. 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,” he added.
Financial details were not disclosed.
In an interim management statement, the company said volume growth in beverage cans had been driven by anticipated contractual gains in North America, although 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, it added. Volumes were slightly down in South America, due to what the company described as an “unfavourable mix”.
Rexam said its healthcare business is trading as expected, “with growth in drug delivery devices and a good flu season offsetting some pricing pressures and volume weakness in our primary packaging business.”
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections