LONDON (Alliance News) - Drinks can maker Rexam PLC Thursday said it continues to expect full-year results to be above its results for last year, with beverage can volumes up 3% in the third quarter driven by growth in North America and improved growth in Western Europe.
However, its markets remain mixed with the growth in West Europe partially offset by weakness in Russia and difficult trading in Egypt and Turkey, while good growth in speciality cans in South America was offset by weakness for standard cans. Still, it said results for the company as a whole are in line with its expectations.
It is changing its manufacturing processes in South America to take account of the shift in demand to speciality cans.
It said it expects "some" volume growth in 2014, although it expects to content with a continuing difficult economic situation in Europe, a maturing speciality can market in North America, and adverse foreign exchange movements.
"Overall performance was in line with our plans. Volumes in North America were strong, and better summer weather helped trading in Western Europe, although there has been continued weakness in Russia," Chief Executive Graham Chipcase said in a statement.
"We will continue with our strategy of optimising cash, managing costs and driving return on capital employed. Our Return On Capital Employed target remains 15%, and we are committed to maintaining returns around that level as we take advantage of the opportunities to grow the business," he added.
Rexam shares were down 1.8% at 509 pence early Thursday, one of the few fallers on the FTSE 100.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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